Coupon: Difference between revisions

Coupon (view source)

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 Hence the fabled journey each year of the [[Belgian dentist]] in which he would set out in his Citroën 2CV with only his favourite pork-pie hat, a brown suit and a battered suitcase full of carefully clipped coupons, cross the border, present his coupons to the Luxembourg [[paying agent]] and promptly depart on a two-week bacchanalian bender in the Balearic before returning to his maxillofacial practice in Brussels' red-light district on the first day of September.
-[[Coupon]] can refer to any [[interest]] payment, under loans, swaps etc, or specifically to the interest payment obligation under a bond as a discrete [[financial instrument]] from its host [[bond]]. Each coupon, once detached, is its own transferable [[promissory note]] , it can trade in the same way as the bond from which it was detached trades. This is called [[coupon stripping]].
+Of course, there aren't any security-printed bonds any more - everything is in dematerialised, book-entry form - so these days a "[[coupon]]" can refer to any [[interest]]-like payment, under loans, swaps etc, or specifically to the interest payment obligation under a bond as a discrete [[financial instrument]] from its host [[bond]]. Each coupon, once detached, is its own transferable [[promissory note]] , it can trade in the same way as the bond from which it was detached trades. This is called [[coupon stripping]].
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 [[Belgian dentist]]