Coupon

(1) On bearer stocks, the detachable part of the hide behind nominee status. Certificate is exchangeable for dividends.
(2) Denotes the nominal rate of interest on a fixed interest security (bond or note). This interest, usually expressed as a percentage of the face value, is paid to the holder of the security by the borrower. The coupon is generally paid annually, semi-annually or, in some cases quarterly depending on the type of security.
(3) A piece of paper detached from a bearer bond and exchanged for a quarterly, semi-annual, or annual interest payment.