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Cupon payments


Annual interest paid on a bond, usually in semi-annual tranches. Cupon payments are expressed as a percentage of the face value of abond. For example, if one holds a bond worth $100 000 at 5% interest, the bondholder will receive $5 000 in cupon payments per year (or, more strictly $2 500 every six months) until the bond matures or the bond is sold.