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Terms Beginning with Z
                       
                       
 Zeolites        
 Zero Coupon Bond        
 Zinc        
 Zinc Concentrate        
         
         
         
         
         
         
                 
                   
 
 
       
       
 

Zero Coupon Bond

Financial Term


A zero-coupon bond is a type of bond that does not pay periodic interest payments like traditional bonds. Instead, it is sold at a discount to its face value and then redeemed for its face value at maturity. The difference between the purchase price and the face value of the bond is the investor's return.

Zero-coupon bonds are used by investors who want to grow their investment over time without receiving any income along the way. Since the bond doesn't pay interest, the investor is able to reinvest their money elsewhere, such as in stocks or other investments, and potentially earn a higher rate of return.

In the financial industry, zero-coupon bonds are used in a variety of ways. They are commonly used for long-term planning, such as funding retirements or saving for college, because they offer a predictable rate of return over the life of the bond. They are also used by corporations and governments to finance long-term projects because they can be issued for longer terms than traditional bonds. Additionally, zero-coupon bonds can be used for hedging strategies because their returns are not tied to interest rates, making them an attractive instrument for managing interest rate risk.


   
     

Zero Coupon Bond

Financial Term


A zero-coupon bond is a type of bond that does not pay periodic interest payments like traditional bonds. Instead, it is sold at a discount to its face value and then redeemed for its face value at maturity. The difference between the purchase price and the face value of the bond is the investor's return.

Zero-coupon bonds are used by investors who want to grow their investment over time without receiving any income along the way. Since the bond doesn't pay interest, the investor is able to reinvest their money elsewhere, such as in stocks or other investments, and potentially earn a higher rate of return.

In the financial industry, zero-coupon bonds are used in a variety of ways. They are commonly used for long-term planning, such as funding retirements or saving for college, because they offer a predictable rate of return over the life of the bond. They are also used by corporations and governments to finance long-term projects because they can be issued for longer terms than traditional bonds. Additionally, zero-coupon bonds can be used for hedging strategies because their returns are not tied to interest rates, making them an attractive instrument for managing interest rate risk.


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