zero-coupon security Sentence Examples
- Zero-coupon securities, also known as "zeros," provide investors with a guaranteed return without any periodic coupon payments.
- These instruments are issued at a deep discount to their face value and mature with a single payment equal to the principal amount.
- Zero-coupon securities are popular among investors who seek capital appreciation over a specific period.
- They offer a fixed return, making them attractive to risk-averse investors.
- The value of a zero-coupon security fluctuates based on interest rate movements.
- Issuers of zero-coupon securities typically use the proceeds to finance capital projects or fund long-term liabilities.
- Zero-coupon securities are often used as components of pension and retirement portfolios.
- They provide a predictable cash flow at the end of the investment horizon.
- Investors should carefully consider the potential risks associated with zero-coupon securities, such as interest rate volatility and inflation.
- Zero-coupon securities can be traded in the secondary market, providing liquidity to investors.
zero-coupon security Meaning
Synonyms & Antonyms of zero-coupon security
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Zero-coupon securities, also known as "zeros," provide investors with a guaranteed return without any periodic coupon payments.
These instruments are issued at a deep discount to their face value and mature with a single payment equal to the principal amount.
Zero-coupon securities are popular among investors who seek capital appreciation over a specific period.
They offer a fixed return, making them attractive to risk-averse investors.
