zero-coupon
Sold below face
Zero-coupon describes a bond or other debt instrument that pays no periodic interest.
Instead, it sells at a discount to its face value and pays the full amount at maturity—the difference representing the investor's return: Zero-coupon bonds are popular for long-term savings goals.
The absence of regular payments makes the price more sensitive to interest rate changes.
Binding tie or connection
- treasuryStored organizational funds
- securityProtection from threat
- maturityFull growth achieved
- discountReduced price offered
yield · portfolio · fixed-income · municipal · corporate · savings · accrual · principal
Reduced price offered
- parExpected stroke count
- accretionGrowth through external addition
- compoundingElements merging progressively
- basisUnderlying support or principle
spread · valuation · premium · quotation · calculation · amortization · appreciation
Subject to government levy
- accrualIncremental addition over time
- IRSFederal tax collector
- annualOccurring every year
- unrealizedNot made actual
liability · reporting · bracket · deferral · municipal · tax-exempt · tax-advantaged
bond
Binding tie or connection
discount · yield · portfolio · fixed-income · municipal · corporate · savings · accrual · principal · face-value
discount
Reduced price offered
- parExpected stroke count
- accretionGrowth through external addition
- compoundingElements merging progressively
basis · spread · valuation · premium · quotation · calculation · amortization · appreciation
taxable
Subject to government levy
unrealized · liability · reporting · bracket · deferral · municipal · tax-exempt · tax-advantaged