Definition of coupon bond in English:

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coupon bond

noun

An investment bond on which interest is paid by coupons.
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.

For editors and proofreaders

Line breaks: cou¦pon bond

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