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 ?
dollars (31% of total debt) and a zero coupon bond with the sovereign's explicit guarantee.
If existing such a zero coupon bond, the empirical analysis is more rewarding.
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. They aggregate these bond-level credit spreads to obtain indexes of credit risk for both banks and non-financial corporations in Germany, France, Italy, and Spain, as well as for the entire euro area.
as a zero coupon bond and a yield rate of 5.15 per cent.
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.
As mentioned earlier, a bond without coupon payments (a zero coupon bond) has a duration equal to its term.
A debt instrument that pays no interest prior to maturity, such as a zero coupon bond, is presumed to be issued at a discount.
Here we define the corporate yield spread as the difference between the yield curves of the risky zero coupon bond and the risk-free, zero coupon bond.
What is a zero coupon bond? How is the owner taxed?
The Welsh Coalfields Bond is technically a zero coupon bond on which no interest is paid.