zero coupon bond Sentence Examples
- A zero coupon bond has no periodic interest payments, making it attractive to investors seeking capital appreciation.
- Unlike traditional bonds with regular coupon payments, a zero coupon bond pays a single lump sum at maturity.
- Zero coupon bonds are ideal for long-term investors willing to lock in a fixed return over a specified period.
- The price of a zero coupon bond varies inversely with interest rates, making them sensitive to market fluctuations.
- Zero coupon bonds are often used as a hedging tool to offset the risk of future interest rate increases.
- The deep discount offered on zero coupon bonds compensates investors for the lack of regular cash flow.
- Zero coupon bonds can be structured to have different terms and maturities, catering to various investment horizons.
- Zero coupon bonds issued by well-established entities offer a relatively low risk compared to equity investments.
- Investors can buy and sell zero coupon bonds on the secondary market, providing flexibility to adjust their portfolios.
- Strategic allocation of zero coupon bonds can enhance portfolio diversification and improve overall returns.
zero coupon bond Meaning
zero coupon bond (n)
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
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
Synonyms & Antonyms of zero coupon bond
No Synonyms and anytonyms found
FAQs About the word zero coupon bond
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
No synonyms found.
No antonyms found.
A zero coupon bond has no periodic interest payments, making it attractive to investors seeking capital appreciation.
Unlike traditional bonds with regular coupon payments, a zero coupon bond pays a single lump sum at maturity.
Zero coupon bonds are ideal for long-term investors willing to lock in a fixed return over a specified period.
The price of a zero coupon bond varies inversely with interest rates, making them sensitive to market fluctuations.
