zero coupon bonds

zero coupon bonds
Bonds on which no interest is payable. The principal and the interest are paid at the maturity date. Such bonds will be issued and traded at a substantial discount to the face value.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • 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. Exchange Handbook Glossary Zero coupon bonds are corporate or municipal debt… …   Financial and business terms

  • 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. Exchange Handbook Glossary Zero coupon bonds are corporate or municipal debt… …   Financial and business terms

  • zero-coupon bonds —  A bond that does not pay periodic interest but instead is sold at a discount from its face value. The value of the bond increases as the bond reaches maturity …   American business jargon

  • Zero-coupon bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • zero coupon bond — A type of debt security that does not pay periodic interest. Zero coupon securities are bought and sold at prices that are less than the par value of the securities. The discount, or difference between the principal paid to purchase the security… …   Financial and business terms

  • 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 . Some zero coupon bonds are issued as such,… …   Investment dictionary

  • 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. The New York Times Financial Glossary * * *    A bond that pays no coupon but is issued at a deep discount to face… …   Financial and business terms

  • Zero-Coupon Convertible — A fixed income instrument that is a combination of a zero coupon bond and a convertible bond. Due to the zero coupon feature, the bond pays no interest and is issued at a discount to par value, while the convertible feature means that the bond is …   Investment dictionary

  • zero-coupon convertible security — 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. Bloomberg Financial Dictionary Also refers to zero coupon bonds, which are… …   Financial and business terms

  • zero coupon yield curve — See yield curve. American Banker Glossary * * *    A yield curve of zero coupon bonds. Market practice is often to derive this curve theoretically from the par yield curve and it is frequently used to derive discount factors. Also known as a spot …   Financial and business terms

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