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And what is a Zero-coupon bond? The article doesn't seem to say. --- mav
I took out the history section. All it said that "This market was started in 1982" (??!!). I don't know how you could say when this market started but a more detailed history of the modern market might be interesting.
According to IMC definition a zero coupon bond is not exactly the same as a deep discount bond (which has a low rather than zero coupon). This is an important distinction and seems to be eroneously represented here. —Preceding unsigned comment added by 82.44.81.250 ( talk) 23:19, 20 November 2008 (UTC)
not unble to get the exact mechanism. Can any one clarify how issuer gains from these bonds
Somebody put on a merge tag to merge this into the general bonds article, but hasn't bothered explaining or starting a discussion anywhere.
The article currently doesn't indicate that zero coupon bonds exist which started out as coupon bonds that subsequently got stripped. It only allows that bonds which never had any coupons but only a maturity value can be zero-coupon. I tried to remedy this but was reverted. I'm adding it back because the rationale for the reversion was nonsense. -- 198.49.180.40 ( talk) 22:27, 2 October 2008 (UTC)
This is the first time I have used this facility, so apologies in advance for any breaches of etiquette.
The article says "The coupons and residue are sold separately to investors. Each of these investments then pays a single lump sum. This method of creating zero coupon bonds is known as stripping and the contracts are known as strip bonds"
Three questions: 1. Are you saying that all of the contracts resulting from the process of stripping are called strip bonds?
2. Are you also saying with the 'single lump sum' phrase that the bond is never stripped into just 2(or more) parts - the residue, and the income stream that is defined by the totality(or arbitrary subsets) of the coupon payments i.e. are you saying there must be a separate contract created for each coupon payment when a bond is split?
3. It seems the residue is financially equivalent to a zero-coupon bond, so why give it a different name? Closd ( talk) 15:24, 18 December 2008 (UTC)
The comment(s) below were originally left at Talk:Zero-coupon bond/Comments, and are posted here for posterity. Following several discussions in past years, these subpages are now deprecated. The comments may be irrelevant or outdated; if so, please feel free to remove this section.
Some body has asked what benefit the issuer of Zero Coupon Bond will get. One of the benefits is that these bonds are issued for a long term and the issuer of this bond will minimize the Interest rate risk. Please respond if you feel this is correct to my email ID shadaab.mahdi@db.com, smahdi12@yahoo.co.in, |
Substituted at 18:47, 17 July 2016 (UTC)
This article is rated B-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||
|
And what is a Zero-coupon bond? The article doesn't seem to say. --- mav
I took out the history section. All it said that "This market was started in 1982" (??!!). I don't know how you could say when this market started but a more detailed history of the modern market might be interesting.
According to IMC definition a zero coupon bond is not exactly the same as a deep discount bond (which has a low rather than zero coupon). This is an important distinction and seems to be eroneously represented here. —Preceding unsigned comment added by 82.44.81.250 ( talk) 23:19, 20 November 2008 (UTC)
not unble to get the exact mechanism. Can any one clarify how issuer gains from these bonds
Somebody put on a merge tag to merge this into the general bonds article, but hasn't bothered explaining or starting a discussion anywhere.
The article currently doesn't indicate that zero coupon bonds exist which started out as coupon bonds that subsequently got stripped. It only allows that bonds which never had any coupons but only a maturity value can be zero-coupon. I tried to remedy this but was reverted. I'm adding it back because the rationale for the reversion was nonsense. -- 198.49.180.40 ( talk) 22:27, 2 October 2008 (UTC)
This is the first time I have used this facility, so apologies in advance for any breaches of etiquette.
The article says "The coupons and residue are sold separately to investors. Each of these investments then pays a single lump sum. This method of creating zero coupon bonds is known as stripping and the contracts are known as strip bonds"
Three questions: 1. Are you saying that all of the contracts resulting from the process of stripping are called strip bonds?
2. Are you also saying with the 'single lump sum' phrase that the bond is never stripped into just 2(or more) parts - the residue, and the income stream that is defined by the totality(or arbitrary subsets) of the coupon payments i.e. are you saying there must be a separate contract created for each coupon payment when a bond is split?
3. It seems the residue is financially equivalent to a zero-coupon bond, so why give it a different name? Closd ( talk) 15:24, 18 December 2008 (UTC)
The comment(s) below were originally left at Talk:Zero-coupon bond/Comments, and are posted here for posterity. Following several discussions in past years, these subpages are now deprecated. The comments may be irrelevant or outdated; if so, please feel free to remove this section.
Some body has asked what benefit the issuer of Zero Coupon Bond will get. One of the benefits is that these bonds are issued for a long term and the issuer of this bond will minimize the Interest rate risk. Please respond if you feel this is correct to my email ID shadaab.mahdi@db.com, smahdi12@yahoo.co.in, |
Substituted at 18:47, 17 July 2016 (UTC)