Sets (2)
Classes (0)
Zero Coupon definitions
| # | Definition | Sets |
|---|---|---|
| 1 | a debt security that does not pay current interest but, rather, returns a higher par value at maturity | 4 sets |
| 2 | a bond issued at a substantial discount from its $1000 face value and that pays little or no interest | 3 sets |
| 3 | is a bond that provides no interest payments and is redeemed for its value at matuarity. | 3 sets |
| 4 | specific maturity date. pays no periodic income. only 1 cashflow, the par value returned at maturity | 2 sets |
| 5 | a bond that has no period interest payments, only the payment of the face value of the bond at the maturity date | 2 sets |
| 6 | ______ _______ bonds (esp. the lengthier) are most sensitive to interest rate changes | 2 sets |
| 7 | which one of the following terms applies to a bond that initially sells at a deep discount and pays no interest payments? -callable -income -zero coupon -convertible -tax-free | 2 sets |
| 8 | duration for a _________ bond is equal to its maturity. | 1 set |
| 9 | sold at discount rate and gives your return | 1 set |
| 10 | only one payment at maturity | 1 set |
| 11 | debt security. does not pay interest. full face value is realized at maturity. traded at a discount. | 1 set |
| 12 | treasury security that has a single cash flow at maturity *same ideas as a treasury bill but for longer maturity *not issued by treasury directly but can be created by stripping existing coupon securities | 1 set |
| 13 | -zeros trade at a deep discount and mature at par -zeros very appropriate for someone saving for a future event such as retirement or a kid's education | 1 set |
| 14 | bonds: even though you do not receive coupon payments, the gov charges interest on these as if they did pay interest | 1 set |
| 15 | bonds: no coupons, no reinvestment risk, sell at a discount to par | 1 set |
| 16 | bond price over time: no reinvestment risk but the lack of coupons creates high volatility | 1 set |
| 17 | 4 type of corporate bond that you will receive interest income | 1 set |
| 18 | bonds: when calculating ytm you still use semiannual periods even though pmt is zero | 1 set |
| 19 | buy it for less than face value | 1 set |
| 20 | pass no interest yearly... it gets added and paid all at once at maturity | 1 set |
| 21 | issued at deep discount, interest paid at maturity | 1 set |
| 22 | a _______ bond owner must report interest income although the bond pays no interest before maturity. | 1 set |
| 23 | promise a single payment on a future date -treasury bill | 1 set |
| 24 | bond that you own doesnt pay any interest, instead it is sold at a discount | 1 set |
| 25 | an___ _bond is a type of bond that is sold for below its face value , with no interest payments, and redeemable for its face value at maturity | 1 set |
| 26 | a bond bought at a lower price than the face value | 1 set |
| 27 | interest is accrued and paid at the end of the loan | 1 set |
| 28 | a ____________ bond is a type of bond that is sold below it's face value, with no interest payments, and redeemable for it's face value at maturity. | 1 set |
| 29 | ordinary income every year that is treated like interest. no capital gains. cav | 1 set |
| 30 | issued at deep discount, interest paid at maturity | 1 set |
| 31 | bond type that pays no coupon specific maturity when returns principal | 1 set |
| 32 | a bond that makes no coupon payments ( and thus is initially priced at a deep discount to par value) i.e. stripped bond | 1 set |
| 33 | bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value. free of reinvestment risk. downside is that there is no opportunity to enjoy the effects of a rise in market interest rates | 1 set |
| 34 | a bond that initially sells at a deep discount and pays no interest payments | 1 set |
| 35 | if a _____________ bond is purchased at a discount, held one year and sold at a much higher price, the investor has interest (ordinary) income plus a capital gain | 1 set |
| 36 | a deep discount bond that pays no regular interest payments is called a(n) _____ bond. | 1 set |
| 37 | accrues interest and pays interest at the end | 1 set |
| 38 | sells at a deep discount ~$300 | 1 set |
| 39 | bonds where face value is repaid in full at maturity; also called discount bond | 1 set |
| 40 | ______________________ bonds have no coupon payment but promise a single payment at maturity. | 1 set |
| 41 | bond that makes no coupon payments and is initially sold at a deep discount | 1 set |
| 42 | a debt security that does not pay current interest but, rather, returns a higher par value at maturity, therefore the holder can buy at a low price, thus realizing interest at maturity. | 1 set |
| 43 | bonds do not pay periodic interest | 1 set |
| 44 | bond holder does not receive coupon payments - always a discount bond - government bonds are often zero coupon bonds | 1 set |
| 45 | bond that makes no coupon payments | 1 set |
| 46 | no interest pmts. a bond that has no periodic interest pmts, only the pmt of the fv of the bond at the maturity date | 1 set |
| 47 | no reinvestment risk | 1 set |
| 48 | a bond that pays no annual interest but is sold at a discount below par, thus compensating investors in the form of capital appreciation | 1 set |
| 49 | which term applies to a bond that initially sells at a deep discount and pays no interest payments? | 1 set |
| 50 | a ____________ bond is a type of bond that is sold below its face value, with no interest payments, and redeemable for its fave value at maturity | 1 set |
| 51 | it means there are no coupon payments to the bond holder.the only payments involved are the original investment and the final repayment of the redemption value at maturity. i.e. a zero coupon bond for two years with redemption value of 1000 and annual yield of 3% would have price p=1000/0.03²=942.6 | 1 set |
| 52 | - no interest payments; discount = interest - issue: discount to know: "longer maturity= deeper discount" | 1 set |
| 53 | - - bond has more interest rate risk than a comparable coupon bond | 1 set |
| 54 | increases in pv reported as taxable income | 1 set |
| 55 | a bond issues at a substantial discount from its 1000 face value and that pays little or no interest.. | 1 set |
| 56 | no interest payments; sold at deep discount | 1 set |
| 57 | a bond that has only one payment, which occurs at maturity - | 1 set |
| 58 | no interest, sells at deep discount | 1 set |