Zero Coupon Bonds
Zero coupon bonds are bonds that do not pay interest during the life of the bonds.
Zero coupon bond
A bond that has no coupon, or interest, but is purchased at a large discount. Upon maturity of the bond the owner recieves the full value of the bond.
Zero Coupon Bond - Has no coupon payment.
The return is in appreciation, purchased at a discount.
Zero Coupon Bonds have the highest durations and are the most sensitive to fluctuations in interest rates.
Zero Coupon Bonds
It is a type of bond which does not pays any interest to its holder. This type of bond is sold at a substantial discount and at maturity the bond holder receives the face value of the bond.
Advertisement ...
Zero coupon bonds have some unique features that make them effective tools for reaching certain financial goals; however, they are not tax-friendly so use caution.
Zero coupon bonds are bond issues that work in a manner that is very different from the usual interest-bearing bond.
Zero Coupon 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.
Zero Coupon Bond
A bond that pays no interest. The bond is initially offered at a discount to its redemption value.
Top Online Forex Brokers ...
Zero coupon bonds are sold at a substantial discount from the face amount. For example, a bond with a face amount of $20,000, maturing in 20 years with a 5.5% coupon, may be purchased for roughly $6,757.
Zero coupon bond
Bond that does not pay interest coupons (zero-coupon bond). Instead of periodic interest payments, the difference between the redemption price and the issue price is the yield to maturity.
Zero coupon bonds
Zero coupon bonds are corporate or municipal debt securities that trade at a deep discount from the face value, as the bond pays no interest to the bondholders during its lifetime.
Prices and news ...
ZERO COUPON BOND - An original issue discount bond on which no periodic interest payments are made but which is issued at a deep discount from par, ...
Zero Coupon Bond
A bond issued at a discount which accrues interest that is paid in full at maturity.
Previous
Start Again ...
Zero Coupon Bond
A bond which pays no interest but is priced, at issue, at a discount from its redemption price.
Zero Coupon Bonds
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.
Zero Coupon Bond A bond that has no coupon payments. It pays only a single cash flow at maturity.
Bloopers & Blunders: An Investment Vehicle ...
Zero coupon bonds
Bonds that earn the principal and interest only at maturity. They are issued at a large discount on its face value.
Top ...
Zero coupon bond
Zero plus tick
12b-1 fees: Advertising and promotional costs incurred by a mutual fund and charged against the assets in the fund under a Rule 12b-1 plan filed with the SEC.
Zero Coupon Bond
A bond with no coupon that is sold at a deep discount from par value.
Zero coupon bond: A bond in which no periodic interest is paid over the life of the contract. Instead, both the principal and the interest are paid at the maturity date.
TOP
Our proprietary CHOICE portfolios ...
Zero Coupon Bonds: Not all bonds pay interest. Some bonds are simply worth one of two things: what someone will pay for them, and what they will be worth on the day the bond expires, which is always the face amount of the bond.
Zero coupon bond: A bond that pays no interest over its life. Long dated zero coupon bonds therefore trade at prices well below their eventual redemption price of par.
Important Links:
Terms & Conditions
Accessibility
Privacy Policy ...
Zero Coupon Bond
Zeros are securities that do not pay interest during their terms but are sold at a discount from their face value.
Zero Coupon Bond - A type of bond that does not pay periodic interest and is issued at a substantial discount from its future redemption price.
Zero coupon bond - A bond that pays no interest but is priced, at issue, at a discount from its redemption price.
Return to top.
Find your local branch ...
Zero coupon bond - a bond sold at deep discount from its face value and with no periodic interest payments.
Zero Coupon Bond
A bond that is purchased at a discount that pays no interest, and provides a return only through an increase in its value as it approaches par value. A zero coupon bond can be a corporate bond or a municipal bond.
Zero coupon bonds--- These are bonds that do not generate interests nor incur tax and other charges. The bondholder would receive the exact amount lent to the bond issuer on the maturity date.
Zero Coupon Bond
Investing terms and definitions starting with
Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...
Zero coupon bond
Such a debt security pays an investor no interest. It is sold at a discount to its face price and matures in one year or longer.
<< Marshall Loeb ...
A zero coupon bond that is callable (by issuer), putable (by investor), and convertible. LYONs are synthetic products that are financially engineered by Merrill Lynch.
Liquidation ...
2: Zero coupon bond, usually a municipal bond, that is convertible into an interest bearing bond at some point before maturity.
See: Yield To Maturity ...
Value of Zero Coupon Bond =
where r is the market interest rate on the zero-coupon and t is the maturity of the zero-coupon bond. Since the cash flow on this bond is fixed, the value of this bond will vary inversely with the discount rate.
Business Dictionary:
Zero Coupon Bond
Top
Home > Library > Business & Finance > Business Dictionary ...
Derivative Zeros - Zero coupon bonds created by stripping coupon and principal payments from a U.S. Treasury Security.
Designated Order Turnaround (DOT) - An order routing and execution reporting system of the NYSE.
taxable income from zero coupon bonds). phantom option plan A form of bonus compensation for an employee, where the employee receives a...
Gilt Strip A Zero Coupon Bond that is either a coupon or the principal of a UK government bond, trading separately. The UK counterpart of Strips (q.v.) on U.S. Treasury notes and bonds.
Zero coupon bonds always have a duration that is equal to their maturity length in years. A zero coupon bonds with 7 years to maturity has a duration of 7.0.
The holder of a zero coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in the future.
The concept of yield to maturity really comes into play when valuing a special kind of bond termed a Zero Coupon Bond.
Spot rate calculations are done by establishing the interest rate that ensures that the present value of a zero coupon bond is the same as its price. A sequence of spot rates is used to establish the price of a bond paying a coupon.
You can also save for retirement, or other long-term financial need, by investing in zero coupon bonds which do not provide periodic interest payments.
Zero Coupon Yield Curve - For zero coupon bonds, the graph of the yields to maturity of the series plotted by maturity.
What else can you read in this_section section?
other_topics ...
Accrual bond
See Zero Coupon Bond.
Accrued expenses
Expenses incurred during a given accounting period for which payment has not yet been made.
The Treasury bill, or T-bill, is a zero coupon bond issued for terms of one month to one year.The T-bill is considered to be the ...
Treasury Bond ...
Making Money from Investing in Bonds
Coffee Talk: Your Financial Questions Answered Edition 2
What is a Bond
Zero Coupon Bonds - How to Use Zero Coupon Bonds
Coupon ...
Discount bond
Debt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond.
Discount broker
A brokerage house featuring relatively low commission rates in comparison to a full-service broker.
STRIPS stands for Separate Trading of Registered Interest and Principal of Securities. Strips are a pre-stripped zero coupon bond that is a direct obligation of the U.S. Treasury.
Triangular Moving Average ...
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). Characteristics: Zero coupon bonds are sometimes issued as such or sometimes they're actual ...
A bond issued at a very low issue price. Deep discounts have low coupons offering an investor high principal return and low interest income. An extreme example is a zero coupon bond that pays all of its return in principal on the redemption date.
This might not seem like a good idea at first, since you'll be paying taxes on interest payments that you aren't going to receive for a long period of time. However, due to the way in which zero coupon bonds are sold, ...
 See also: Coupon, Coupon Bond, Interest, Bonds, Market
|
