Coupon Interest /Coupon Amount: Meaning & Definition

Coupon interest/ Coupon Amount is an amount paid to the bond or debenture holders annually, semiannually or quarterly until it's maturity. Coupon payment is calculated by multiplying coupon rate with face value of bonds. As coupon rate and face value are fixed it is also fixed. Let's be clear from this example, suppose you bought 10%, 5-years bond of AMC CORPORATION at a par value of $1000. As a bond holder you will receive coupon amount/interest of $100 (10% of $1000) annually for next 5 years.

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