zero-coupon security Synonyms

No Synonyms and anytonyms found

zero-coupon security Meaning

zero-coupon security Sentence Examples

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

FAQs About the word zero-coupon security

What is the meaning of the word zero-coupon security

What are the synonyms of the word zero-coupon security

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What is the usage of word zero-coupon security

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.

How to use the word zero-coupon security in a sentence?

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.