zero coupon bond


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Noun1.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 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 ?
Alternatively, the creditors will be offered a zero coupon bond of the KAF with a term of about 13.
They analyze information on hundreds of thousands of monthly observations on the yield to maturity of corporate bonds since the launch of the euro in January 1999, and define the credit spread at the bond level as the difference between the corporate bond yield and the yield of a same-maturity German Bund zero coupon bond.
The principal payment of the loan (bullet) is guaranteed and paid with a zero coupon bond issued by the Federal
Treasury held a 21-month (644-day) TRY denominated zero coupon bond auction as well as a 3-year (966-day) TRY denominated fixed coupon bond auction.
The zero coupon bond matures at par, thereby guaranteeing the investor's capital, while the call option maintains the upside exposure required.
Bryant cautions the investor to be aware that although the buyer of the zero coupon bond does not receive interest payments yearly--as they would with a regular bond (coupon)--the buyer is responsible for paying taxes on the accumulation of interest on the bond, an amount known as the accreted value of the bond.
This formulation is better suited for the regression-based calculation of duration than the usual method of using change in zero coupon bond yields, because it takes into account the time dimension of returns on the zero coupon bond from one month to the next.
For example, you might purchase a zero coupon bond today for $500 that will mature in 10 years for $1,000.
Under the original issue discount rules, the interest implicit in the amortization of the discount on the zero coupon bond component of the SIGNs would be taxed annually over the life of the instrument.
These instruments were subject to "bifurcation" rules so that, for tax purposes, a MITT was treated as two separate instruments--a zero coupon bond (bearing original issue discount) and a cash settlement option on the S&P 500 index.
business, acquires at original issue a zero coupon bond of Y, a U.
Global Banking News-15 April 2009-Nabard to launch 10-year Zero Coupon Bond issue this month(C)2009 ENPublishing - http://www.