zero-coupon bond

(redirected from Capital Appreciation Bonds)
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Related to Capital Appreciation Bonds: Zero Coupon Bonds
ThesaurusAntonymsRelated WordsSynonymsLegend: bond - a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bondzero-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
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
References in periodicals archive ?
Governments entered many of these deals because they felt they were going to get something useful out of them--some extra income from the interest-rate swaps, low (or hidden) payments from the capital appreciation bonds, lower interest rates from the letters of credit, the ability to spend their cash reserve on something else, and so on.
Much of the concern about school district debt has focused on the use of a controversial financing tool called capital appreciation bonds, or CABs.
WEAK DEBT PROFILE: With heavy reliance on capital appreciation bonds (CABs), debt service ascends steadily until 2050.
8 million GO convertible capital appreciation bonds, series 2013-A;
The turbo and capital appreciation bonds were put on Rating Watch Negative in July 2012 with the expectation that the change in the base case assumption could lead to downgrades.
10,670,013 series 2006B first subordinate capital appreciation bonds due June 1, 2046 downgraded to 'B-sf' from 'BB-sf'; removed from Negative Watch and assigned a Negative Outlook;
AFFORDABLE DEBT: Overall debt burden is modest; debt, pension and other post-employment benefit (OPEB) costs are moderate; and the use of capital appreciation bonds will not cause annual debt service hikes.
140,630,248 capital appreciation bonds series 2002A
NEW YORK -- The issuance of capital appreciation bonds (CABs) is fairly common in municipal finance, particularly for issuers in rapidly growing areas.

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