firm's owners for no more than the capital they have invested in the firm debt the state of owing something (especially money) arrears the state of being. Related Terms Most Viewed Browse Definitions by Letter: # Y Z deep-discount bond strip. To help stay organized, it can be helpful to run through a checklist of essential tasks that must be completed before a business can open. An obligation is a duty. Compare: current interest bond ; zero coupon bond.
What is Zero-coupon Bond?
What is zero-coupon bond?
Type of: state the way something is with respect to its main attributes n the social force that binds you to the courses of action demanded by that force every opportunity, an obligation, synonyms: duty, responsibility, types: show 21 types. See: compound accreted value. The rate paid by T-bills) bond, bond certificate a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed. Tax law, the imputed interest on a zero-coupon bond is taxable as it accrues, even though there is no cash flow. At maturity the investor receives a single payment (the maturity value ) representing both the initial principal amount and the total investment return. A zero-coupon bond has the important advantage of being free of reinvestment risk, though the downside is that there is no opportunity to enjoy the effects of a rise in market interest rates. Test Your Knowledge - and learn some interesting things along the way. Adam Colgate, surety Bonds - a Crucial, Often Forgotten Tool for.
Zero-Coupon Bond - Investopedia
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