Definition of Coupon Bonds

Definition: A bond can be resold into two parts that can be thought of as components: (1) a principal component that is the right to receive the principal at the end date, and (2) the right to receive the coupon payments. The components are called strips. The right to receive coupon payments is the coupon strip.

Terms related to Coupon Bonds:

• Bond
• Discount Bond
• Coupon Strips

About.Com Resources on Coupon Bonds:

• What is the Demand For Money?
• Expansionary Monetary Policy vs. Contractionary Monetary Policy
• Principal Strip

Writing a Term Paper? Here are a few starting points for research on Coupon Bonds:

Journal Articles on Coupon Bonds:

• Default Risk and the Duration of Zero Coupon Bonds
• Testing Merton's Model for Credit Spreads on Zero-Coupon Bonds
• On the Call Provision in Corporate Zero-Coupon Bonds