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bearer bond |
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bearer bond
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| 3 billion zero coupon bond in January of 2001, before the company gave new meaning to the term "zem coupon. Bryant cautions the investor to be aware that although the buyer of the zero coupon bond does not receive interest payments yearly--as they would with a regular bond (coupon)--the buyer is responsible for paying taxes on the accumulation of interest on the bond, an amount known as the accreted value of the bond. HOW THE INFLATION-INDEXED BOND WORKS Cash flow structure Semiannual coupon bond with both coupon and par value of bond indexed to inflation Maturity 10 years Inflation index Consumer price index-urban (CPI-U), non-seasonally adjusted as published by the Department of Labor Index adjustment Value of CPI-U as reported for the third preceding month and interpolated daily Frequency of issuance Quarterly, starting January 15, 1997 |
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