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What is a Bond Coupon and how is it paid?
What is a Bond Coupon and how is it paid?
Updated over 8 months ago

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value (face value is always $1,000), and is paid from the issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a year divided by the face value of the bond in question).

For example, if the coupon rate is 5%, then you would receive $50 in annual interest for a $1,000 par bond assuming the bond was held for a year.

Keep in mind, that coupon rates do not change and are fixed rates throughout the entirety of the bond.

Coupons are typically paid semi-annually and you can see the payment date while in-app or on the web by:

To find in the App:

  • Open Public App

  • Tap on the bond of interest

  • Scroll down to the ‘About’ section

  • View coupon frequency and next coupon payment date

To find on the Web:

  • Login

  • Click on the bond of interest

  • Scroll down to ‘Bond Details’

  • View coupon frequency and next coupon payment date

For further questions please contact the Member Support team via in-app chat or email at support@public.com.

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