Zero-Coupon Bond
A bond that, instead of paying interest, is sold at a deep discount. You get the face value at maturity, and the difference between the two is the yield. Mostly these are Treasury securities.
Zero-coupon bonds are bonds which do not pay interest payments (also known as coupon payments). The bonds are purchased at a discount from what they will be worth when they mature.
Zero-coupon bond
A Municipal, corporate, or Treasury bond that pays no annual interest over the life of the bond, are offered at a deep discount to par value and are redeemed at full value upon maturity.
A bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date.
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Zero-coupon bonds Zero-coupon bonds are relatively rare in the high-yield market, although there are many zero/step-up bonds. Zero-coupon bonds pay no current interest. Instead, they pay all accrued interest out at maturity.
Zero-Coupon Bonds
Bonds that do not pay interest periodically. Instead these bonds are purchased at a discount and held to maturity, when all compounded interest is paid and the bondholder collects the face value of the bond. Under U.S.
Zero-coupon Bond
Definition: A bond that doesn't pay interest but is sold at a deep discount. The investor profits from the bond going up in value (kind of like a stock).
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 bond
A bond sold at a deep discount to its face value. It doesn't pay periodic interest payments to investors; instead, investors receive their return on investment at maturity.
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 bond
A bond that pays all its interest and principal at the bond's maturity. An investor's income from a zero-coupon bond comes solely from the bond's appreciation in value.
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Zero-coupon bond
These bonds are so named because the coupon rate (the amount of interest paid) is zero.
Zero-coupon Bond
A bond that is issued without a coupon but at a deep discount. At maturity, it is redeemed at its face amount.
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Zero-coupon bond: A bond sold at a deep discount. It does not pay periodic interest payments to investors; instead, investors receive their return on investment at maturity.
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Zero-coupon bonds explained.
If you're looking for a cheap type of bond to invest in, then you might want to take a look at zero-coupon bonds. These bonds are cheaper because of the way in which they've been stripped of their "coupon".
Zero-coupon bonds make no coupon payments but instead are issued at a considerable discount to par value.
Zero-coupon bond
A bond that locks in a fixed rate of return but does not make any payments to the owner until maturity. "Zero-coupon" refers to the fact that there is no periodic interest (coupon) paid by the bond.
A zero-coupon bond is a bond sold without interest-paying coupons. Instead of paying periodic interest, the bond is sold at a discount and pays its entire face amount upon maturity, which is usually a one year period or longer.
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A zero-coupon bond issued by a corporation that can be converted into that corporation's common stock. Also known as a "split coupon bond".
A zero-coupon bond which can be converted into the common stock of the issuing company at a certain price, using a put option inherent in the security.
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English: Zero-coupon bond
Zertifikat
Verbrieft die Teilnahme an der Kursentwicklung bestimmter Wertpapiere oder Wertpapierkonstrukte. Der Inhaber eines Zertifikats partizipiert an der Kursentwicklung eines Basiswerts.
Consider a 30-year zero-coupon bond with a face value of $100. If the bond is priced at an annual YTM of 10%, it will cost $5.73 today (the present value of this cash flow, 100/(1.1)30 = 5.73).
Also known as zero-coupon bonds or accrual bonds, these securities are bought at a fraction of their face value. Interest earned on the initial investment is reinvested, compounding the interest until the face value of the bond is met.
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...
CATS are US Treasury zero-coupon bonds that are sold at deep discount to par, or face value. Like other zeros, the interest isn't actually paid during the bond's term but accumulates so that you receive face value at maturity.
Sometimes referred to as a no coupon bond, the idea behind a zero-coupon bond is to provide the option of purchasing bonds at a price that is less than the face value of the bond.
Also known as accrual bonds, zero-coupon bonds pay no interest until maturity. These bonds are sold at a deep discount from face value and are redeemed at full face value at maturity.
You can also purchase longer-term CDs, zero-coupon bonds and tax-free municipal bonds to meet special needs. You stagger the maturity of these items so they mature at different times.
As with the zero-coupon bond, the default-free coupon bond should have a value that varies inversely with the yield to maturity.
Like zero-coupon bonds, they do not pay interest prior to maturity; instead they are sold at a discount of the par value to create a positive yield to maturity. Many regard Treasury bills as the least risky investment available to U.S. investors.
Zero-Coupon Convertible Security
1: Zero-coupon bond convertible into the common stock of the issuing company when the stock reaches a predetermined price.
Treasury zero-coupon bonds. They're created and sold by brokerage firms, not by the government.
Such funds specialize in particular kind of bond, such as government, corporate, convertible, high-yield, mortgage-backed, municipal, and foreign or zero-coupon bonds.
a dividend payer should mimic the difference between a regular bond and a zero-coupon bond -- very different characteristics, but similar products *with similar intrinsic values.* With most companies and most markets, that's usually the case.
On most securities the maturity value is the par value; on capital appreciation and zero-coupon bonds, however, the maturity value is the compound accreted value at maturity. See: COMPOUND ACCRETED VALUE; PAR VALUE.
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.
Deep-discount bond
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.
The return on the bond depends solely on the relationship between the purchase price and the face value. Zero-coupon bonds are considered to be very volatile due to the absence of regular interest payments.
investment objectives and policies, a bond fund may concentrate its investments in a particular type of bond or debt security-such as government bonds, municipal bonds, corporate bonds, convertible bonds, mortgage-backed securities, zero-coupon ...
called fixed-income securities because the cash flow from them is fixed. The main types of bonds people are investing in today are the corporate bond, the municipal bond, the treasury bond, the, treasury note, treasury bill, and the zero-coupon bonds.
expectations interpretation 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 ...
A zero-coupon bond is an example of an OID. Out-of-the-Money An option that has no intrinsic value because its strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying.
 See also: Coupon Bond, Coupon, Interest, Bond, Bonds
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