Bond Coupons

Coupons, ranging in number from a handful to many dozens for each bond, are attached to the bottom or sides of the bond. Often they are on one or more separate sheets.

When an interest payment is due on the bond, the bondholder simply clips the correct coupon and redeems it at a bank or at the issuing company offices. Normally the interest rate of the bond and the date of payment are on each coupon.

Other information such as the form of payment, such as gold coin, would also appear. Attractive, fresh, crisp coupons are a definite plus for bonds, especially if the bond was redeemed early and numerous coupons remain attached.