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Noun

zero-coupon bond - a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond; the commonest form of zero-coupon security

zero coupon bond

governing, government activity, government, governance, administration - the act of governing; exercising authority; "regulations for the governing of state prisons"; "he had considerable experience of government"

corp, corporation - a business firm whose articles of incorporation have been approved in some state

bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal

zero coupon security, zero-coupon security - a security that makes no interest payments but instead is sold at a deep discount from its face value

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References in periodicals archive

First, we report the real term premia of our model, defined as the average yield difference between a 30-year and a 1-year zero-coupon bond, denoted by E([R.sup.zc30] - [R.sup.f]).

The Real Term Premium in a Stationary Economy with Segmented Asset Markets

In Section 2, the new pricing models of zero-coupon bond and European option are established, and then the corresponding pricing formulas are derived.

Pricing Option with Stochastic Interest Rates and Transaction Costs in Fractional Brownian Markets

The offer would substitute Heta's debt with a zero-coupon bond guaranteed by the Austrian government.

Fitch: Heta Deal Could Give Modest Profit Uplift to German Banks

A capital appreciation bond is sort of like a zero-coupon bond, but instead of being sold at a discount from the face value, the bond is sold as returning a fixed rate of interest.

Predatory public finance

The zero-coupon bond yield for the matching maturity implied by the term structure for Canadian government securities is used as a proxy for the Canadian interest rate.

Canadian stock returns and the term structure of interest rates

The third asset is one zero-coupon bond with maturity T, whose price process is denoted by B(t, T).

Portfolio selection with liability and affine interest rate in the HARA utility framework

Thus, from the point of view of bond repayment schedule, it is a compromise between a classical fixed interest bond and zero-coupon bond. Considering the value of money over time, the characteristics of variable coupons may be selected in such a way that the debt cost perceived as its internal rate of return would remain unchanged in relation to classical repayment methods.

Stepped coupon bonds and restructuring factoring in relation to net circulating capital in companies in financial difficulty

Consider [I.sup.j.sub.t], the domestic-denominated price of the foreign currency unit J and [B.sub.J](t,T), the foreign zero-coupon bond of country J.

Optimal international diversification with constraints

Structured notes with principal protection typically combine a zero-coupon bond - which pays no interest until the bond matures - with an option or other derivative product whose payoff is linked to an underlying asset, index or benchmark.

SEC, FINRA warn retail investors about investing in structured notes with principal protection