zero coupon bond Synonyms

No Synonyms and anytonyms found

zero coupon bond Meaning

Wordnet

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

zero coupon bond Sentence Examples

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

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.