zero-coupon bond : strip bond 2 of 2transitive verb 1 :to convert into a debt secured by bonds 2 :to provide a bond for bondan employee More from Merriam-Webster onbond Nglish:Translation ofbondfor Spanish Speakers Britannica.com:Encyclopedia article aboutbond ...
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In finance, a certain threshold or condition that must be met for a coupon to be paid or activated in structured products. For example: “The bond had a coupon barrier set at an inflation rate of 2%, ensuring that the coupon would only be paid if inflation exceeded that level.” ‘Coup...
bond of•thebonds ofslavery bond2AWLverb1[intransitive]if two thingsbondwith each other, they become firmlyfixedtogether, especially after they have beenjoinedwith glueIt takes less than ten minutes for the two surfaces to bond.2[intransitive]todevelopaspecialrelationshipwith someone→bondingbond wit...
Zero-coupon bonds only make the payment of the face value on the maturity date. People buy themat a lower price than their face value. Coupon rate vs. yield The bond’s coupon rate is how much income it pays in interest each year. The payment is based on its face value. ...
- so-called coupons, hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par (or face) value. Examples of zero-coupon bonds...- In probability theory, the coupon collector's problem refers to mathematical analysis of "collect all coupons and win" ...
Eventually, the price of these bonds with the lower coupon rates will drop to a level where the rate of return is equal to the prevailing market interest rates. Bond Duration Bond durationmeasures the change in a bond’s price when interest rates fluctuate. If the duration of a bond is hi...
ɒn$-pɑːn/●●○noun[countable]1a smallpieceofprintedpaperthat gives you therighttopayless for something or get somethingfreeThe coupon entitles you to ten cents off your next purchase.2a printedform, used when you order something,enteracompetitionetcTo order, fill in the coupon on page...
At the end of the bond life, none of the coupons will remain and the bond certificate can be turned in to the bank or broker to collect the face value of the bond.ExampleCoupon bonds are slightly different than traditional bonds because the interest paid to bondholders is not deductible ...
The market price of the 3% coupon bond would be lower than that of a 5% because it is simply less interest than other bonds at that time. From New York Times So, thinking about other types of "fixed income" investments that don’t include traditional long-term fixed coupon bonds will be...