Definition of coupon bond in English:
An investment bond on which interest is paid by coupons.
- 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.
Definition of coupon bond in:
- US English dictionary
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