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Clipping coupons

In days gone by, bond certificates were issued with coupons for the interest attached. On the interest payment date, you mailed in the coupon to collect the interest payment. Now nearly all bonds are registered and interest checks are mailed to the registered owner or if held in a brokerage account, your broker receives the payment electronically and credits interest to your account.

Clipping coupons is an outdated expression which refers to collecting interest on bond investments.