--%>

Characteristics of Zero coupon bonds market instrument

State the characteristics of the Zero coupon bonds market instrument.

E

Expert

Verified

Zero coupon bonds are sold at the discount from face value and also do not pay any coupon interest over their life.  At the time of maturity, investor receives full face value.  Other form of zero coupon bonds is the stripped bonds.  A stripped bond is a zero coupon bond which results from stripping the coupons and principal from the coupon bond.  Result is a series of zero coupon bonds which is presented by the individual coupon and principal payments.

   Related Questions in Financial Accounting

  • Q : Theory of comparative advantage Specify

    Specify the considerations that could bound extent to which theory of the comparative advantage is practical?

  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

  • Q : Historical Cost of Inventory What is

    What is the Historical Cost of Inventory?

  • Q : Investment approach of Lynch Investment

    Investment approach of Lynch: Peter Lynch, the best known mutual fund manager, also adopts the words of Benjamin Graham in the sense that he looks at companies not from the perspective of how the stock prices move

  • Q : Payment method-Buy pound or investing

    When you have visited the London, you have purchased a Jaguar for £35,000, which is payable within the three months. Enough cash is there at your bank in the New York City that pays 0.35% of interest per month, compounding monthly, to pay for car. Presently, spo

  • Q : Accounts and Bills payable-Accounts and

    Illustrate the difference between Accounts and Bills payable, Accounts and Bills receivable?

  • Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Q : Define Conspicuous Consumption

    Conspicuous Consumption: It is the phenomena of spending money on services and goods which are not required but keeping them gives you a high social status. Those things are kept mainly for the purpose of displaying and creating a false image of your

  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create

  • Q : Pricing spill-over effect Discuss

    Discuss pricing spill-over effect.