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Coupon payments

• A bond's interest payments.

• Bonds pay interest using coupons. For instance, if the stated interest rate on a $1,000 face value bonds is 8%, there are $40 coupons attached to the bond that can clipped and cashed every six months. Hence, the annual dollar interest will be $80 or 8% of the face value of the bond.

 
 Embedded terms in definition
 Bond
Face value
Interest payments
Interest rate
Interest
Will
 
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