What does zero coupon bond mean?
Definitions for zero coupon bond
zero coupon bond
This dictionary definitions page includes all the possible meanings, example usage and translations of the word zero coupon bond.
Princeton's WordNet
zero coupon bond, zero-coupon bondnoun
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
Wiktionary
zero coupon bondnoun
A bond (e.g., corporate debenture or government debt) that has no coupon (i.e., pays no interest), during the life of the issue. Such a bond is initially sold at a discount to its face value. The rate of return to the holder is derived from the gradual appreciation as the security moves toward maturity.
Wikipedia
zero coupon bond
A zero coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par (or face) value. Examples of zero-coupon bonds include US Treasury bills, US savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has been stripped of its coupons. Zero coupon and deep discount bonds are terms that are used interchangeably. In contrast, an investor who has a regular bond receives income from coupon payments, which are made semi-annually or annually. The investor also receives the principal or face value of the investment when the bond matures. Some zero coupon bonds are inflation indexed, and the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power, rather than a set amount of money, but most zero coupon bonds pay a set amount of money known as the face value of the bond. Zero coupon bonds may be long or short-term investments. Long-term zero coupon maturity dates typically start at ten to fifteen years. The bonds can be held until maturity or sold on secondary bond markets. Short-term zero coupon bonds generally have maturities of less than one year and are called bills. The US Treasury bill market is the most active and liquid debt market in the world.
ChatGPT
zero coupon bond
A zero-coupon bond is a debt security instrument that does not pay interest (coupon) but is traded at a discount, rendering profit at maturity when the bond is redeemed for its full face value. It primarily offers only a return at the end of tenure when it is matured, and hence called a zero-coupon bond, meaning no interest (coupon) on it.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of zero coupon bond in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of zero coupon bond in Pythagorean Numerology is: 3
Translations for zero coupon bond
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"zero coupon bond." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/zero+coupon+bond>.
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