What Is A Coupon?

 
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A coupon is the interest rate paid on a corporate bond. The coupon rate and payment schedule is set at the time of the corporate bond's issue. Coupons can be fixed rate, floating rate, or index linked. Coupons are paid semi-annually or quarterly, depending on the terms of the corporate bond.

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"Corporate bonds are a great defensive asset class and far more interesting than having money sitting in the bank."

- Warwick Blowes

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