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100 FAQ's on Basic Finance

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Coupon Bearing bonds

A coupon bearing bond, also known as a coupon bond or bearer bond, is a type of debt security that pays periodic interest payments to the holder. These bonds have detachable coupons attached to the certificate, which represent the individual interest payments.

Here's how it works:

  • Issuance: A company or government issues a coupon bond with a specific face value, interest rate (coupon rate), and maturity date.

  • Interest Payments: The bond certificate has detachable coupons, each representing an interest payment for a specific period (usually semi-annual).

  • Collecting Interest: To collect interest, the bondholder detaches the appropriate coupon from the certificate and presents it to the issuer's paying agent on the payment date. The agent verifies the coupon's authenticity and makes the interest payment to the bearer.

  • Maturity: When the bond reaches its maturity date, the bondholder can redeem the certificate for its face value.

To get comprehensive data on Indian Corporate Bonds & Debenture, you can check out the NSDL India Bond Info.

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Units 40/101