Coupon bond

A coupon bond is a bond of a straight type that pays interest in the form of interest. The holder of a coupon bond recieve interest periodically, usually annually, and a nominal amount at maturity.

A coupon bond is amortized only once, at maturity. Coupon bonds is the most common bonds in the bond market and has a maturity that is exceeding two years. National Debt Office, mortgage institutions, banks and companies are issuing coupon bonds. Coupon bonds are bought and sold on a secondary market, the bond market.