Coupon

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cou·pon / ˈk(y)oōˌpän/ • n. 1. a voucher entitling the holder to a discount for a particular product. ∎  a detachable portion of a bond that is given up in return for a payment of interest. 2. a form in a newspaper or magazine that may be filled in and sent as an application for a purchase or information.

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COUPON

A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due.

Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer instrument. A coupon is a written contract for the payment of a definite amount on a specified date according to the terms of the main document from which it must be separated for presentation for payment. Each coupon represents a separate promise by its issuer to pay its holder on the due date. Failure to do so will support a cause of action for breach of contract.

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coupon XIX. — F. coupon piece cut off, slice, f. couper cut; see COPE 2.