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Zero-coupon bond

Index Zero-coupon bond

A zero-coupon bond (also discount bond or deep discount bond) is a bond where the face value is repaid at the time of maturity. [1]

23 relations: Bond (finance), Bond duration, Callable bond, Canada, Central bank, Central securities depository, Custodian bank, Face value, Immunization (finance), Inflation-indexed bond, Insurance, Interest, Maturity (finance), New Zealand, Original issue discount, Par value, Pension fund, Purchasing power, Reinvestment risk, Secondary market, Time value of money, United States, United States Treasury security.

Bond (finance)

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.

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Bond duration

In finance, the duration of a financial asset that consists of fixed cash flows, for example a bond, is the weighted average of the times until those fixed cash flows are received.

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Callable bond

A callable bond (also called redeemable bond) is a type of bond (debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity.

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Canada

Canada is a country located in the northern part of North America.

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Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.

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Central securities depository

A central securities depository (CSD) is a specialist financial organization holding securities such as shares either in certificated or uncertificated (dematerialized) form so that ownership can be easily transferred through a book entry rather than the transfer of physical certificates.

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Custodian bank

A custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not engaged in "traditional" commercial or consumer/retail banking such as mortgage or personal lending, branch banking, personal accounts, automated teller machines (ATMs) and so forth.

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Face value

The face value is the value of a coin, stamp or paper money, as printed on the coin, stamp or bill itself by the issuing authority.

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Immunization (finance)

In finance, interest rate immunization, as developed by Frank Redington is a strategy that ensures that a change in interest rates will not affect the value of a portfolio.

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Inflation-indexed bond

Daily inflation-indexed bonds (also known as inflation-linked bonds or colloquially as linkers) are bonds where the principal is indexed to inflation or deflation on a daily basis in terms of the official Daily CPI or monetized daily indexed unit of account like the Unidad de Fomento in Chile and the Real Value unit of Colombia.

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Insurance

Insurance is a means of protection from financial loss.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Maturity (finance)

In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

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New Zealand

New Zealand (Aotearoa) is a sovereign island country in the southwestern Pacific Ocean.

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Original issue discount

Original Issue Discount (OID) is a type of interest that is not payable as it accrues.

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Par value

Par value, in finance and accounting, means stated value or face value.

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Pension fund

A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.

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Purchasing power

Purchasing power (sometimes retroactively called adjusted for inflation) is the number and quality or value of goods and services that can be purchased with a unit of currency.

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Reinvestment risk

Reinvestment risk is one of the main genres of financial risk.

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Secondary market

The secondary market, also called the aftermarket and follow on public offering is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

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Time value of money

The time value of money is the greater benefit of receiving money now rather than later.

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United States

The United States of America (USA), commonly known as the United States (U.S.) or America, is a federal republic composed of 50 states, a federal district, five major self-governing territories, and various possessions.

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United States Treasury security

A United States Treasury security is an IOU from the US Government.

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Redirects here:

Coupon strip, Deep discount bond, Discount bond, Discount bonds, Principal strip, Strip (finance), Strip (gilt), Strip (gilts), Strip bond, Zero Coupon, Zero coupon, Zero coupon bond, Zero coupon bonds, Zero-coupon, Zero-coupon bonds.

References

[1] https://en.wikipedia.org/wiki/Zero-coupon_bond

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