Zero-coupon bonds
The holder of a zero-coupon bond realizes interest by buying the bond at a discount to its principal value. These bonds made their debut in the U.S. bond market in the early 1980s. ...
Zero-coupon bonds have a par value that is their maturity value. They are issued at a discount from that par value. These are also called zeros or original issue discount (OID) bonds.
Zero-coupon Bond A BOND that bears a zero COUPON RATE and hence is issued at a price substantially below its FACE VALUE.
Zero-coupon bond
Zero-coupon bonds, sometimes known as zeros, are issued at a deep discount to par value and pay no interest during their term.
Zero-coupon bond
Definition: A bond that does not pay periodic interest to the bondholder over its term as an ordinary bond does.
Zero-Coupon Bond
BOND on which the holder receives only one payment at maturity which includes both PRINCIPAL and INTEREST from issuance to maturity.
zero-coupon bond
A bond sold with no coupons. This type of debt security pays an investor no interest. It is sold at a discount to its face value and matures in one year or longer.
Zero-coupon bond, or Zero
A bond that, instead of carrying a coupon, is sold
at a discount from its face value, pays no interest during its life, and pays the
principal only at maturity.
Zero-coupon bond. A bond that pays all its interest at maturity but none prior to maturity.
ZERO-COUPON BONDS " A bond sold at a substantial discount which does not pay periodic interest.
ZERO-PLUS-TICK " See: Up-tick.
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Zero-coupon bond
A bond where no periodic interest payments are made. The investor receives one payment, which includes principal and interest, at redemption (call or maturity). (See "discount note.") ...
Zero-Coupon Bonds
A deep discount municipal bond on which no current interest is paid. Instead, at bond maturity, the investor receives compounded interest at a specified rate.
Zero-coupon bond
A bond in which no periodic coupon is paid over the life of the contract. Instead, both the principal and the interest are paid at the maturity date.
Zero-coupon convertible security ...
Zero-Coupon Bonds: Debt instruments issued by government or corporations at a steep discount from face value. Interest accrues each year but is not paid out until maturity.
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Zero-coupon bond (Zero)
These bonds are issued at a deep discount but pay no interest until they mature. You buy zeros, usually in denominations of $1,000 per bond, at prices far below par value.
Zero-Coupon Bond
A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
Also known as an "accrual bond".
Zero-coupon bonds are a popular type of original issue discount security. The drawback, from the investor's perspective is that the imputed interest that accumulates is taxable each year even though that interest has not been paid.
zero-coupon bond
short rate model
Notes
^ Campbell R. Harvey, 1986. University of Chicago Dissertation.
^ Campbell R. Harvey, 2010. The Yield Curve: An update.
zero-coupon bond
A bond that generates no periodic interest payments and is issued at a discount from face value. All return is realized at maturity.
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Zero-coupon bonds
A bond that does not pay any coupon interest over the life of the bond. Instead it makes a single payment of principal face value on maturity.
zero-coupon bond A bond sold at a deep discount from its face value that makes no interest payments and matures at face value. It involves interest rate risk but not reinvestment risk.
Zero bonds; zero-coupon bonds:
A Bond on which no periodic interest (coupons) is paid during its life, and where both the principal and the interest are paid at the bond's maturity date.
Also refers to zero-coupon bonds, which are convertible into an interest bearing bond at a certain time before maturity.
Treasury Receipt
A zero-coupon bond issued by a brokerage firm and collateralized by treasury securities held for the investor by a custodian.
A bond that has no coupon is called a zero-coupon bond. Deep in the money A call option with an exercise price substantially below the underlying stock's market price.
Even if the Treasury does not issue zero-coupon bonds these are purchased by investment and banking firms, allowed to create their own receipt using the process of coupon stripping.
zero-coupon bond A debt security that does not offer any interest (a coupon), but trades at a... zero-coupon convertible Zero-coupon convertible bonds are no-interest bonds issued by a company that...
A zero-coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security.
For financial risk mangers, bootstrapping means (1) the procedure where coupon bonds are used to generate the set of zero-coupon bond prices, or (2) the use of historical returns to create an empirical probability distribution for returns.
Also called "zero-coupon bonds." Strips are the interest coupons themselves. Since neither actually pays interest (they are merely redeemable on maturity at face value), they sell at a discount to face value.
Australian Stock Price Riskless Indexed Note (ASPIRIN) - A zero-coupon bond with a return linked to the Australian all-ordinaries stock index.
derivative zero: A zero-coupon bond created by stripping coupon and principal payments from a U.S. Treasury security.
devaluation: Lowering of the value of a country's currency relative to gold or the currencies of other nations.
Zero-Coupon Convertible Security
1: Zero-coupon bond convertible into the common stock of the issuing company when the stock reaches a predetermined price.
Gilt strips are a type of zero-coupon bond. A Government bond's income and principal is effectively split up and traded separately.
Here, each cash flow can be matched by trading in (a) some multiple of a zero-coupon bond corresponding to the coupon date, ...
Most common issues are zero-coupon bonds. Generally, discount bonds accumulate interest through the life of the bond, paying both principal (original purchase price) and accumulated interest at maturity.
Bond that can be subdivided into a series of zero-coupon bonds.
Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their attaractiveness to different ...
A bond's duration will almost always be shorter than its maturity, with the exception of zero-coupon bonds, for which maturity and duration are equal.
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BONDS PAYABLE - The face value of bonds issued and unpaid. In the case of zero-coupon bonds, however, only the accreted value of the bond is reported as bonds payable on the balance sheet.
Brady bonds are usually collaterized by the US Treasury zero-coupon bonds that are bought by the debtor country. They are named after the US Treasury Secretary Nicholas Brady, who was involved in the debt-reduction program.
The real return of an investment is always uncertain, even for safe assets such as default-free zero-coupon bonds that have a maturity equal to the length of the investment period, even though the nominal cash flow is guaranteed ...
Stripped bond
Definition: [crh] Bond that can be subdivided into a series of zero-coupon bonds.
A variation known by the acronym "STRIPS" (Separate Trading of Registered Interest and Principal of Securities) is a stripped zero-coupon bond that is a direct obligation of the U.S. Treasury.
Split-coupon bond
A bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date.
A variant of pure expectations theory which suggests that the return that an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that ...
A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond.
Pure expectations theory ...
A bond issued with a very low coupon or no coupon that sell at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
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Deep-discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
Many investors choose bonds when they want a source of current income while seeking to preserve their capital. There are many kinds of bonds, such as U.S. Treasury, U.S. Agency, corporate, municipal and zero-coupon bonds.
between the amount you paid for the bond and its "face value" (face value is the amount you get at maturity) is generally taxed as it is earned each year, even though you won't actually receive it until the bond matures. A zero-coupon bond is an ...
It is most commonly used to describe the process of mapping a yield curve defined through a series of market instruments into a series of zero-coupon bonds, but can also be applied to other instances, ...
- An acronym for Separated Trading of Registered Interest and Principal of Securities. A strip is a bond, usually issued by the U.S. government, whose interest and repayment of principal are separated and sold individually as zero-coupon bonds.
There are several different types of bond, including zero-coupon bonds (normally sold at a discount to make up for the lack of interest payments) and convertible bonds (convertible into shares).
price the investor receives when selling the bond. If the investor holds the bond to maturity, the investor will earn the difference between its discounted cost and its maturity value. A U.S. Series EE savings bond is a form of a zero-coupon bond.
Accrued interest is calculated on a 30-day month for corporate bonds and municipal bonds, and on actual-calendar-days for Government Bonds. Income bonds, bonds in default and zero-coupon bonds trade without accrued interest.
When bonds are issued at a discount, such as with zero-coupon bonds, the entry is to debit cash and bond discount and credit bonds payable. The entry to record the interest each period is to debit interest expense and credit cash. Or 2.
Although most coupon payments are issued every six months, there are coupon payments paid out at other intervals (i.e. monthly, quarterly or annually). A bond with no coupon is called a zero-coupon bond. Coupon are also referred to as coupon rate.
The most extreme version of an OID is a zero-coupon bond, which is originally sold far below par value and pays no interest until it matures.
Also called a zero-coupon bond or a single-payment bond. Pure expectations theory A theory that asserts that forward rates exclusively represent the expected future rates.
Return-to-maturity expectations A variant of pure expectations theory which suggests that the return that an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a ...
 See also: Banks, Funding, Term bonds, Expense, Convertible Bond
  
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