Most investments pay coupon payments on a schedule agreed at the time of issuance. For many municipal bond investments, this schedule is twice a year. The bond’s annual coupon rate is split equally between these two payments.
For instance, if a bond has a coupon of 5% and pays interest semi-annually, you will receive two payments equal to 2.5% of the face value of your investment.
When you add an order to your cart, you will see an overview of the estimated coupon payments on the cart screen.
If you have selected more than one maturity option, the timeline will show the combined total of the coupon payments you are expected to receive for all maturities.
In some cases, the first or last coupon payment may be a partial payment. Read more about how accrued interest is used to calculate partial payments.
If you are investing in a zero-coupon bond, interest will be paid when your investment matures.