Definition: A coupon bond is the same as a bearer bond in that it is not registered with a company but instead, whoever physically has possession of the coupon bond has the right to receive the interest income. They are extremely rare now due to terrorism and money laundering concerns and are more from a by-gone era. For more information, you may be interested in reading Why Is Bond Interest Called a Coupon?
Coupon Bond
By Joshua Kennon, About.com
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