Coupon (bond)

A coupon ( [ ku'pɔ ], also coupon from französ couper " cut, cut .") Is the portion of a security, usually for payment of a dividend ( the "Dividend permit") or interest ( " coupon ", " coupon " ) entitled. In stock market jargon, this term is used as a synonym for the nominal interest rate of a bond. This implies a coupon of 6 % ​​, that for each Interest Payment Date pro rata 6% of the nominal value is paid as interest.

Historically, the term coupon comes directly from the securities in each case to the interest or dividend date, the coupon was cut off and could be exchanged for cash (see also table business). The securities consisted of the " mantle " ( the actual securities ) and the " bow " (consisting of the individual coupons and the renewal certificate - also called Talon - exists ). In stocks, possibly other rights, including rights to subscribe for new (young) shares of capital or the purchase of convertible bonds with coupons can be claimed.

At the present time play coupons in paper form only effective pieces a role when the investor so the security is in physical form. If the last coupon used on the sheet, the shareholder may apply for a full Coupon sheet with a renewal license.

In general, bonds, equities or similar securities are only in dematerialized securitized with a central in a global certificate.

Terms of Use

Also an interest or dividend certificate is a security. It gives the right to make a certain date the amount of interest in the currency of the security claims. It is a bearer instrument. The demand for payment of interest or a dividend subject to standard limitation of three years. The limitation period for coupons of mutual fund shares ( mutual funds ) is four years.