A Coupon Is Something Cut Off
A coupon is a voucher. The French word means a piece cut off, from bond certificates with detachable slips.
A coupon is a voucher entitling the holder to a discount or a payment. The name is literal: French *couper* means to cut. Bearer bonds carried a sheet of small slips, and the holder cut one off and presented it for each interest payment. That is why a bond's interest rate is still called its *coupon* even though no paper is cut.
- A discount voucher. *A money-off coupon.*
- A detachable form. *Fill in the coupon.*
- A bond's interest rate. *A five per cent coupon.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | coupon | A discount coupon. |
| Plural | coupons | Clipping coupons. |
| Related | voucher | A gift voucher. |
| Related | rebate | A cash rebate. |
| Related | coup | A military coup. |
How it is used in a sentence
- The bond pays a four per cent coupon.Finance.
- She clipped coupons from the paper.Retail.
- Coupon comes from *couper*, to cut.Etymology.
Words from *couper*, to cut
- Coupon — a piece cut off
- Coup — a decisive stroke
- Coupé — a car body style, originally a cut-down carriage
- Recoup — originally to cut back, then to recover a loss
- Coupe — a shallow glass or dish
From French *coupon*, a piece cut off, from *couper*, to cut, from Old French *colp*, a blow, from Latin *colaphus*.
Why is bond interest called a coupon?
Because bearer bonds had detachable slips that were cut off and presented for each interest payment.
Are coup and coupon related?
Yes. Both come from a word meaning a blow or stroke, through the French verb meaning to cut.