Dictionary of Banking Terms: short coupon
short coupon
- bond interest payment for a period less than the standard six months. Normally, only the first interest payment of a new issue has a short coupon, as computed from the accrued interest payable from the issue date until the first coupon payment date.
- bond with a relatively short remaining term to maturity, usually under two years.See also long coupon.
Dictionary of Finance and Investment Terms: short coupon
short coupon
- bond interest payment covering less than the conventional sixmonth period. A short coupon payment occurs when the original issue date is less than a half year from the first scheduled interest payment date. Depending on how short the coupon is, the accrued interest makes a difference in the value of the bond at the time of issue, which is reflected in the offering price.
- bond with a relatively short maturity, usually two years or less.
