What is Coupon?

Legal Definition
In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product.

Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, coupon envelopes, magazines, newspapers, the Internet (social media, email newsletter), directly from the retailer, and mobile devices such as cell phones. Since only price conscious consumers are likely to spend the time to claim the savings, coupons function as a form of price discrimination, enabling retailers to offer a lower price only to those consumers who would otherwise go elsewhere. In addition, coupons can also be targeted selectively to regional markets in which price competition is great.

In government, a coupon is a paper certificate used to administer a benefit or permission.
-- Wikipedia
Legal Definition
The periodic CASH FLOW payable by an issuer or borrower to an investor or lender for the use of DEBTbased CAPITAL. Coupon payments may be based on fixed or floating INTEREST RATES, and may be payable on a weekly, monthly, quarterly, semiannual or annual basis, or accrued until final maturity of the LIABILITY. See also CORPUS, PRINCIPAL. STRIPPING See STRIPPING.
Legal Definition
Those parts of a commercial instrument which are. to be cut, and which are evidence of something connected with the contract mentioned in-the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the interest is paid, they are cut off and delivered to the payor.
-- Bouviers Law Dictionary
Legal Definition
Interest and dividend certificates ; also those parts of a commercial instrument which are to be cut, and which are evidence of something connected with the contract mentioned in the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the interest is paid, they are cut off and delivered to the payer. Wharton. Coupons are written contracts for the payment of a definite sum of money on a given day, and being drawn and executed in a form and mode for the purpose, that they may be separated from the bonds and other instruments to which they are usually attached, it is held that they are negotiable and that a suit may be maintained on them without the necessity of producing the bands. Each matured coupon upon a negotiable band is a separable promise, distinct from the promises to pay the bonds or the other coupons, and gives rise to a separate cause of action. Aurora v. West, 7 Wall. 88, 19 L. Ed. 42.
See also
-- Black's Law Dictionary
Legal Definition
Certificates attached to a bond, each representing an installment of interest, principal, or both, to be cut off by the holder and cashed by the obligee. See 4? Me. 232.
-- Ballentine's Law Dictionary