Bond coupon
The interest periodically paid to a bondholder under the bond’s terms.
Definition
The interest periodically paid to a bondholder under the bond’s terms.
Why this concept matters
It helps estimate contractual income before any potential issuer default.
What to watch
A high coupon may reflect greater risk and does not guarantee capital repayment.
Simple example
A €1,000 bond with a 4% annual coupon normally pays €40 a year.
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