Coupon Financial Glossary

What is it? The amount of interest or dividends paid each year by the Issuer of the security. The coupon rate is usually expressed as a percentage of the securitys Face Value. Please note the yield and the coupon of a security are not necessarily the same thing.

Finance Term Definition Added By: Isabelle

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Other Similar Finance Terms:

Financial Term Premium is An amount paid on a regular schedule by a policyholder that maintains insurance coverage.

Financial Term Redemption Penalty is An additional charge made by the lender if the mortgage is repaid within a pre-agreed period of time. These have become increasingly common with the growth in fixed rate and heavily discounted products. They are generally imposed to stop borrowers hopping from one lender to another simply to take advantage of the latest heavy discount or cheap fixed rate. Normally expressed as a number of months interest within a set period of years i.e. 6 months interest if redeemed within the first seven years but may also be expressed as a percentage of the mortgage debt i.e. 5% of the mortgage if redeemed within the first seven years. Careful attention should be paid to these penalties as they vary considerably from lender to lender and the lower and shorter the penalty the more attractive the deal.

Financial Term Rate is The cost of a given unit of insurance.

Financial Term Credit Rating is A rating given a person or company to establish credit worthiness based upon present financial condition, experience and past credit history.

Financial Term Occupational Pension Scheme is A pension scheme set up by an employer for its employees.