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

  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

Wikipedia

  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.

ChatGPT

  1. zero-coupon bond

    A zero-coupon bond is a type of bond that does not pay interest (coupon) periodically, but instead is sold at a discount to its face value. It is redeemed at its full face value upon maturity, with the difference between the purchase price and the face value representing the return on investment to the holder. This difference can be considered as the interest that accumulates over the bond's term, although it isn't paid out until maturity.

Wikidata

  1. Zero-coupon bond

    A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. 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 value. Examples of zero-coupon bonds include U.S. Treasury bills, U.S. savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has been stripped of its coupons. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Some zero coupon bonds are inflation indexed, so 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 the majority of 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 U.S. Treasury bill market is the most active and liquid debt market in the world.

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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

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"zero-coupon bond." Definitions.net. STANDS4 LLC, 2024. Web. 29 Mar. 2024. <https://www.definitions.net/definition/zero-coupon+bond>.

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