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coupon - 7 dictionary results

cou⋅pon

[koo-pon, kyoo-]
–noun
1. a portion of a certificate, ticket, label, advertisement, or the like, set off from the main body by dotted lines or the like to emphasize its separability, entitling the holder to something, as a gift or discount, or for use as an order blank, a contest entry form, etc.
2. a separate certificate, ticket, etc., for the same purpose.
3. one of a number of small detachable certificates calling for periodic interest payments on a bearer bond. Compare coupon bond.
4. Metallurgy. a sample of metal or metalwork submitted to a customer or testing agency for approval.

Origin:
1815–25; < F; OF colpon piece cut off, equiv. to colp(er) to cut (see cope 1 ) + -on n. suffix


cou⋅pon⋅less, adjective


Coupon, related to cope and coup, is of French origin. It has developed an American pronunciation variant[kyoo-pon] with an unhistorical y-sound not justified by the spelling. This pronunciation is used by educated speakers and is well-established as perfectly standard, although it is sometimes criticized. Its development may have been encouraged by analogy with words like curious, cupid, and cute, where c is followed by a “long u” and the [y] is mandatory.
cou·pon   (kōō'pŏn', kyōō'-)   
n.  
  1. A negotiable certificate attached to a bond that represents a sum of interest due.
    1. One of a set of detachable certificates that may be torn off and redeemed as needed: a food coupon.
    2. A detachable part, as of a ticket or advertisement, that entitles the bearer to certain benefits, such as a cash refund or gift.
    3. A certificate accompanying a product that may be redeemed for a cash discount.
    4. A printed form, as in an advertisement, to be used as an order blank or for requesting information or obtaining a discount on merchandise.
  2. A detachable slip calling for periodic payments, as for merchandise bought on an installment plan.

[French, from Old French colpon, piece cut off, from colper, to cut, from colp, blow; see coup.]
Word History: A Roman might have had difficulty predicting what would become of the Latin word colaphus, which meant "a blow with the fist." In Old French, a language that developed from Latin, the Late Latin word colpus, derived from colaphus, became colp, or modern French coup, with the same sense. Coup has had a rich development in French, gaining numerous senses, participating in numerous phrases, such as coup d'état,) and giving rise to many derivatives, including couper, "to divide with a blow or stroke, to cut." Couper yielded the word coupon, "a portion that is cut off," which came to refer to a certificate that was detachable from a principal certificate. The detachable certificate could be exchanged for interest or dividend payments by the holder of the principal certificate. Coupon is first recorded in English in 1822 with this sense and then came to apply to forms or tickets, detachable or otherwise, that could be exchanged for various benefits or used to request information.

Coupon

Cou"pon\ (k??"p?n; F. k??`p?n"), n. [F., fr. couper to cut, cut off. See Coppice.]

1. (Com.) A certificate of interest due, printed at the bottom of transferable bonds (state, railroad, etc.), given for a term of years, designed to be cut off and presented for payment when the interest is due; an interest warrant.

2. A section of a ticket, showing the holder to be entitled to some specified accomodation or service, as to a passage over a designated line of travel, a particular seat in a theater, or the like.
Language Translation for : coupon
Spanish: cupón,
German: der Gutschein,
Japanese: 優待券

coupon 
1822, "certificate of interest due on a bond" (which could be cut from the bond and presented for payment), from Fr. coupon, from O.Fr. coupon "piece cut off," from couper "to cut," from coup "a blow." Meaning widened to "discount ticket" 1860s by British travel agent Thomas Cook. The specific advertising sense is from 1906.

Coupon

The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually.

This is also referred to as the "coupon rate" or "coupon percent rate".

Investopedia Commentary

For example, a $1,000 bond with a coupon of 7% will pay you $70 a year.

The reason it's called a "coupon" is because some bonds literally have coupons attached to them. Holders receive interest by stripping off the coupons and redeeming them. This is less common today as more records are kept electronically.

Related Links

Bond Basics Tutorial
Advanced Bond Concepts

See also: Coupon Bond, Coupon Pass, Interest Rate, IO Strip, Zero Coupon Bond

Also spelled: CPR


coupon

  1. The annual interest paid on a debt security. A coupon is usually stated in terms of the rate paid on a bond's face value. For example, a 9% coupon, $1,000 principal amount bond would pay its owner $90 in interest annually. A coupon is set at the time a security is issued and, for most bonds, stays the same until maturity.
  2. The detachable part of a coupon bond that must be presented for payment every six months in order to receive interest. See also clip, coupon clipping.


Main Entry: cou·pon
Pronunciation: 'kü-"pän, 'kyü-
Function: noun
Etymology: French, from Old French, piece, from couper to cut
: a statement of due interest to be cut from a debt instrument and esp. a bearer bond when payable and presented for payment; also : the interest rate of a coupon
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