Coupon payment date type

There are two variants of monthly periodicity of coupon payments.

Fixed date

When a bond specifies a "fixed date" for coupon payments, it means that the interest payments will occur on a specific predetermined date each period. This could be a specific day of the month, such as the 15th of every month, or a particular calendar date, like January 1st. Bondholders can anticipate the exact date on which they will receive their interest payments.

End of month

The "last day of the month" type of payment schedule provides flexibility in terms of the exact date of payment, as it can vary depending on the number of days in each month. This type of payment eliminates the need to track specific payment dates and ensures that bondholders receive their interest payments promptly at the end of each month.