A Quick History Lesson: Coupons

    The history of the "coupon system" starts with the bearer bonds, bonds that hold no financial record and are the property of the current possessor. Several of these coupons would be printed onto the bearer bond and during each scheduled payment  of interest date, the owner would detach the coupon and submit it for proper payment. This procedure ended with the formalization of internet banking, which allows banks and brokers to instantaneously send the required interest payment directly to the account of the bond's possessor.