An investment bond on which interest is paid by presenting coupons.
Example sentencesExamples
- 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.
- This portfolio anticipates a volatile market environment with price swings in every asset class except the short-term zero coupon bond fund.
- 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.
- 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.
- Our sample includes only pure discount and coupon bonds whose prices are not perturbed by any optionalities such as prepayment options.