The interest or dividend certificate entitling the holder to the redemption of the respective income from a bond or share; see also Section 803 of the German Civil Code. – In the case of a bond, payments are usually made every year until maturity (regulary interest is paid every year until the bond reaches maturity. It was named a coupon payment, because a bondholder, in order to obtain interest payment, had to clip off a coupon and to forward it to the bond issuer, who then sent the bondholder the payment. Today, this process is no longer required for most coupon bonds). – In the language of the financial world, often also used for – the interest on a bond – i.e. the interest rate – and sometimes also for – the interest payment (the periodic interest payment made to the bondholders during the life of the bond). – See annuity, accrued interest, talon.
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