zero coupon security Antonyms
No Synonyms and anytonyms found
Meaning of zero coupon security
zero coupon security (n)
a security that makes no interest payments but instead is sold at a deep discount from its face value
a security that makes no interest payments but instead is sold at a deep discount from its face value
zero coupon security Sentence Examples
- Zero coupon securities offer investors no periodic interest payments, instead relying solely on the return of principal at maturity.
- The price of zero coupon securities is typically lower than a bond with the same face value and maturity that pays regular interest payments.
- Zero coupon securities are often used by institutions looking to lock in a specific return without the risk of fluctuations in market interest rates.
- Investors can use zero coupon securities as a way to earn a guaranteed return over a specific period.
- The yield on a zero coupon security is the annual rate of return an investor would earn if they held the security until maturity.
- Zero coupon securities can be attractive to investors who want to avoid the risk of reinvestment and liquidity issues.
- Zero coupon securities can also be used as a hedge against inflation.
- The price of a zero coupon security will increase as interest rates fall.
- Zero coupon securities are typically issued with maturities ranging from 1 to 30 years.
- Zero coupon securities are a type of fixed-income investment that can offer investors a way to earn a predictable return over time.
FAQs About the word zero coupon security
a security that makes no interest payments but instead is sold at a deep discount from its face value, a security that makes no interest payments but instead is
No synonyms found.
No antonyms found.
Zero coupon securities offer investors no periodic interest payments, instead relying solely on the return of principal at maturity.
The price of zero coupon securities is typically lower than a bond with the same face value and maturity that pays regular interest payments.
Zero coupon securities are often used by institutions looking to lock in a specific return without the risk of fluctuations in market interest rates.
Investors can use zero coupon securities as a way to earn a guaranteed return over a specific period.
