Difference between revisions of "Zero coupon bond"

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(Created page with "Zero coupon bond is a bond that pays no coupons at all but is offered at a substantial discount below its par value and hence provides capital appreciation rather than...")
 
(Definitions)
 
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Zero coupon bond]]. Pays no coupons at all but is offered at a substantial discount below its par value and hence provides capital appreciation rather than interest income.
 
:[[Zero coupon bond]]. Pays no coupons at all but is offered at a substantial discount below its par value and hence provides capital appreciation rather than interest income.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Zero coupon bond]]s. Bonds that pay no annual interest but are sold at a discount below par, thus compensating investors in the form of capital appreciation.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 23:16, 1 November 2019

Zero coupon bond is a bond that pays no coupons at all but is offered at a substantial discount below its par value and hence provides capital appreciation rather than interest income.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Zero coupon bond. Pays no coupons at all but is offered at a substantial discount below its par value and hence provides capital appreciation rather than interest income.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Zero coupon bonds. Bonds that pay no annual interest but are sold at a discount below par, thus compensating investors in the form of capital appreciation.

Related concepts

Related lectures