Definition of coupon bond in English:

coupon bond

Syllabification: cou·pon bond

noun

  • An investment bond on which interest is paid by presenting coupons.
    More example sentences
    • The proceeds from selling the low coupon bonds and the strips left over from creating the coupon bond should exceed the amount paid for the high coupon bond.
    • To compute the price of a coupon bond in terms of its stripped components, the prices of each payment were estimated using the term structure of observed bid yields for strips.
    • Efficient capital markets imply that the price of a coupon bond should not differ from the value of a package of cash flow components that replicates the coupon bond.

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