A zero-coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds...
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finance, a coupon is the interest payment received by a bondholder from the date of issuance until the date of maturity of a bond. Coupons are normally...
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Duration (finance) (redirect from Bond Duration)
bond, the Macaulay duration will be between 0 and the maturity of the bond. It is equal to the maturity if and only if the bond is a zero-coupon bond...
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detail: (1) the bond's coupon dates and coupon amounts are known with certainty. Therefore, (2) some multiple (or fraction) of zero-coupon bonds, each corresponding...
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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...
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the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time). The timing...
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called face value or principal, into a 10-year government bond with a 10% annual coupon; the government would pay the bondholder 10% interest ($2000...
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value. With a callable bond, investors have the benefit of a higher coupon than they would have had with a non-callable bond. On the other hand, if interest...
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bootstrapping is a method for constructing a (zero-coupon) fixed-income yield curve from the prices of a set of coupon-bearing products, e.g. bonds and swaps...
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zero-coupon bond and lowest with an amortizing bond (where the payments are front-loaded). Although the amortizing bond and the zero-coupon bond have different...
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Yield to maturity (category Bond valuation)
value}}{\text{Present value}}}}-1} Consider a 30-year zero-coupon bond with a face value of $100. If the bond is priced at an annual YTM of 10%, it will cost...
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United States Treasury security (redirect from Treasury bond)
separate the interest coupons from paper securities for separate resale, while the principal would be resold as a zero-coupon bond. The modern versions...
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Bond+Option is a capital guarantee product that provides an investor with a fixed, predetermined participation to an option. Buying the zero-coupon bond...
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compounded. In contrast to zero-coupon bonds, accrual bonds have a clearly stated coupon rate. The dictionary definition of Accrual bond at Wiktionary v t e...
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An affine term structure model is a financial model that relates zero-coupon bond prices (i.e. the discount curve) to a spot rate model. It is particularly...
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Zero price may refer to: Free of charge, a price of zero The offering price of a Zero-coupon bond or its financial equivalent This disambiguation page...
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Security (finance) (redirect from Supra-national bond)
is a callable bond, and the issuer calls the bond. The bondholder has about one month to convert it, or the company will call the bond by giving the holder...
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Sukuk (redirect from Islamic bond)
from "sakk". an exception is the "zero coupon" bond or sukuk where there is no payout or coupon but the value of the bond/sukuk increases until maturity...
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timings of scheduled payments. A ZCS takes its name from a zero coupon bond which has no interim coupon payments and only a single payment at maturity. A ZCS...
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Yield curve (section Effect on bond prices)
maximum smoothness of either forward interest rates, zero coupon bond prices, or zero coupon bond yields Local regression using kernels Linear programming...
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{\displaystyle Q} , then the price at time t {\displaystyle t} of a zero-coupon bond maturing at time T {\displaystyle T} with a payoff of 1 is given by...
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may equally well replace the savings account by the risk-free bond. A unit zero-coupon bond maturing at time T {\displaystyle T} is a security paying to...
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Mortgage-backed security (redirect from Mortgage bond)
mortgage pass-through. Just as this article describes a bond as a 30-year bond with 6% coupon rate, this article describes a pass-through MBS as a $3...
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belongs to the class of no-arbitrage models, i.e. it can fit today's zero-coupon bond prices, and in its most general form, today's prices for a set of caps...
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with warrants P 0 {\displaystyle P_{0}} Coupon payments C Maturity T Required rate of return r Face value of bond F Value of warrants = P 0 − ( ∑ t = 1...
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seller borrows an asset (often a security such as a share of stock or a bond) and quickly selling it. The short seller must later buy the same amount...
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includes CPPI, which consists of a guarantee, notionally related to a zero-coupon bond and an underlying investment. Assets are dynamically shifted (or allocated)...
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yield (on annual interest rate basis) of an n {\displaystyle n} -year zero-coupon bond (ZCB), and P n {\displaystyle P_{n}} denotes the price of an n {\displaystyle...
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specified dates. This type of bond protects investors: if interest rates rise after bond purchase, the future value of coupon payments will become less valuable...
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