The "principal-only" bonds would sell at a discount, and would thus be zero coupon bonds (e.g., bonds that you buy for $800 each and which mature at $1...
28 KB (4,478 words) - 03:25, 3 February 2024
Bond (finance) (section Coupon)
borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time). The timing and the amount of cash flow...
44 KB (6,298 words) - 21:49, 3 August 2024
collateralized mortgage obligations (CMOs, often structured as real estate mortgage investment conduits) and collateralized debt obligations (CDOs). A mortgage...
40 KB (5,251 words) - 01:00, 6 June 2024
In finance, a zero coupon swap (ZCS) is an interest rate derivative (IRD). In particular it is a linear IRD, that in its specification is very similar...
13 KB (2,054 words) - 17:18, 11 March 2023
default are so low as to be negligible. For example, the rate of return on zero-coupon Treasury bonds (T-bills) is sometimes seen as the risk-free rate of return...
11 KB (1,560 words) - 18:21, 30 June 2023
the coupon is almost always semiannual, while Euro denominated corporates pay coupon quarterly. The coupon can be zero. In this case the bond, a zero-coupon...
15 KB (1,799 words) - 13:14, 17 July 2024
Thus, the issuer has an option which it pays for by offering a higher coupon rate. If interest rates in the market have gone down by the time of the...
4 KB (491 words) - 15:51, 6 March 2023
Gilt-edged securities (section Coupon rate)
(the periodic coupon payments) and Principal (the ultimate repayment of the investment) which can be traded separately as zero-coupon gilts, or gilt...
15 KB (1,903 words) - 10:43, 29 August 2024
forward contract, or option contract, by which the short seller assumes an obligation or right to sell an asset at a future date at a price stated in the contract...
65 KB (8,108 words) - 10:45, 6 September 2024
individual or institution buys an asset (such as a commodity, a bond that has coupon payments, a stock that pays dividends, and so on) and sells it using a futures...
89 KB (11,099 words) - 21:04, 30 July 2024