A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a

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A coupon bond is a debt security that pays the owner a fixed interest payment (coupon) every year until the maturity date, at which point the face value of the bond is repaid. This is in contrast to a simple or fixed-payment loan, where the borrower receives the entire loan amount at the beginning and repays it in fixed installments, and a discount bond, which is sold at a price below its face value and does not pay any interest until maturity.

A Credit Market Instrument That Pays the Owner a Fixed