What is the bond coupon?

Coupon, also known as coupon, coupon payment, originally refers to the part of the bond printed on the face of the bond in the era of paper bonds, which the bondholder can cut off and take to the bond issuer on the coupon date to exchange the current interest.

In the era of electronic bonds, coupons refer to the total amount of interest received by bondholders each year.

In general, interest on bonds is usually paid half-yearly, with the same amount each time.

For example, a $1000 bond with a coupon of 5% means you need to pay $50 a year in interest, which is paid semi-annually, meaning bondholders receive $25 twice a year. Here, the coupon is $50.