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TeachMeFinance.com - explain coupon coupon -- (1) a tab attached to a bond , which can be torn off and presented to collect an interest payment, usually semiannually. (2) a percentage of a bond's face value, which is the annual rate of return received by the bondholder. historic definition... Coupon -- The obligation for interest on a bond that is called a coupon is a printed part of the bond attached in ticket form so that it may be cut off when it becomes due. A coupon may be sold or may be deposited in a bank the same as a check. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.