Glossary
/Coupon
What is a Coupon?
It has absolutely nothing to do with shopping discounts. In the bond market, it is the fixed rupee amount of interest the issuer hands you every year. If you hold a government bond with a ₹500 coupon, you will get exactly ₹500 in your bank account annually until the bond ends. The weird name comes from the old days when bonds were actual paper certificates with tear-off coupons that you took to the bank to collect your cash. Today, it gets credited digitally.
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