Definitions for zero coupon bond
zero coupon bond

Princeton's WordNetRate this definition:0.0 / 0 votes

1. 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

WiktionaryRate this definition:0.0 / 0 votes

1. 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.

WikipediaRate this definition:0.0 / 0 votes

1. 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.

ChatGPTRate this definition:0.0 / 0 votes

1. 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

1. • Bond
   • Zero-coupon Security

How to pronounce zero coupon bond?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say zero coupon bond in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of zero coupon bond in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of zero coupon bond in Pythagorean Numerology is: 3

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=zero coupon bond
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Zero_Coupon_Bond
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Zero_Coupon_Bond
4. ^ ChatGPT
   https://chat.openai.com