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 ?
The minister is offering those that are holding out a zero-coupon bond issued by the federal Treasury.
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.
J](t,T), the foreign zero-coupon bond of country J.
It is for this paper to bring forward a non-standard convertible zero-coupon bond intended not only as a financing vehicle but also as a driver of better corporate governance.
That doesn't sound like a big decline, but that would net about 30% appreciation on a 30-year coupon bond and about a 60% appreciation on a 30-year zero-coupon bond.
The investment had the same characteristics as a low risk, zero-coupon bond.
Unlike the typical zero-coupon bond, where the taxpayer must report an amount of accrued interest annually, the investor can choose to defer reporting interest earned on an EE bond until it is cashed, stops earning interest at final maturity, or is disposed of in some other way (such as an ownership change through a reissue transaction).
government zero-coupon bond that will mature in exactly 30 years with a terminal value equal to the face value of the interest-only mortgage.
Because of its intermediate payments, a conventional bond returns cash to the purchaser more quickly than does a zero-coupon bond of identical maturity.
For example, a zero-coupon bond issued at $500 and maturing in 10 years at $1,000 provides a yield of 7.
2002-31 describes a 20-year, zero-coupon bond that a corporation issued for cash at 62.