Zero-coupon Bond in a sentence
Synonym: bond, investment.
Meaning: A zero-coupon bond is a bond that does not pay interest but is sold at a discount to its face value.
(1) The zero-coupon bond will mature in 10 years.
(2) The coupon rate on the zero-coupon bond is 0%.
(3) The zero-coupon bond was purchased at a deep discount.
(4) The return on a zero-coupon bond is realized when it matures.
(5) The zero-coupon bond's value is determined by market conditions.
(6) The zero-coupon bond's value increases as it approaches maturity.
(7) The return on a zero-coupon bond is fixed at the time of purchase.
(8) The zero-coupon bond's price is inversely related to interest rates.
(9) The par value of the zero-coupon bond is typically sold at a discount.
(10) The price of a zero-coupon bond can fluctuate in the secondary market.
Zero-coupon Bond sentence
(11) Investing in a zero-coupon bond can be a way to lock in a fixed return.
(12) The price of a zero-coupon bond is typically lower than its face value.
(13) The zero-coupon bond's price is influenced by changes in interest rates.
(14) The par value of the zero-coupon bond is paid in a lump sum at maturity.
(15) The return on a zero-coupon bond is dependent on holding it until maturity.
(16) The price of a zero-coupon bond is influenced by prevailing interest rates.
(17) The interest earned on a zero-coupon bond is considered to be taxable income.
(18) The interest earned on a zero-coupon bond is accrued and paid out at maturity.
(19) Investing in a zero-coupon bond can be a good strategy for long-term investors.
(20) A zero-coupon bond is a type of investment that does not pay periodic interest.
Zero-coupon Bond make sentence
(21) The zero-coupon bond's yield is based on the discount at which it was purchased.
(22) The longer the maturity of a zero-coupon bond, the greater the potential return.
(23) The price of a zero-coupon bond will increase as it approaches its maturity date.
(24) The principal value of a zero-coupon bond is fixed and does not change over time.
(25) A zero-coupon bond is a type of bond that does not pay periodic interest payments.
(26) The price of a zero-coupon bond will fluctuate based on changes in interest rates.
(27) The price of a zero-coupon bond is inversely related to changes in interest rates.
(28) The maturity date of a zero-coupon bond is the date when the face value is paid out.
(29) The face value of a zero-coupon bond is the amount that will be paid out at maturity.
(30) The return on a zero-coupon bond is realized when the bond reaches its maturity date.
Sentence of zero-coupon bond
(31) The yield on a zero-coupon bond is determined by the discount at which it is purchased.
(32) The price of a zero-coupon bond is influenced by market conditions and investor demand.
(33) Investors who purchase a zero-coupon bond receive the face value of the bond at maturity.
(34) A zero-coupon bond is a type of fixed-income security that does not pay periodic interest.
(35) The interest rate on a zero-coupon bond is typically lower than that of a traditional bond.
(36) The value of a zero-coupon bond is determined by its face value and the time until maturity.
(37) One advantage of a zero-coupon bond is that it can be purchased at a lower price than its face value.
(38) The zero-coupon bond's value is determined by the difference between the purchase price and face value.
(39) The return on a zero-coupon bond is solely based on the difference between purchase price and face value.
(40) The lack of periodic interest payments is what distinguishes a zero-coupon bond from other types of bonds.
(41) The yield on a zero-coupon bond is determined by the difference between its purchase price and face value.
(42) One advantage of a zero-coupon bond is that it can be held until maturity without the need for reinvestment.
(43) The maturity date of a zero-coupon bond is the date on which the bondholder will receive the face value of the bond.
(44) The yield on a zero-coupon bond is determined by the difference between the purchase price and the face value of the bond.
(45) The return on a zero-coupon bond is determined by the difference between the purchase price and the face value of the bond.
Zero-coupon Bond meaning
Zero-coupon bond is a financial term that refers to a type of bond that does not pay periodic interest payments to the bondholder. Instead, it is sold at a discount to its face value and the investor receives the full face value of the bond at maturity. This article aims to provide you with tips on how to use the term "zero-coupon bond" in a sentence effectively.
1. Definition and Context: When using the term "zero-coupon bond" in a sentence, it is essential to provide a clear definition or context to ensure the reader understands the meaning. For example: - "A zero-coupon bond is a fixed-income security that does not pay interest but is sold at a discount to its face value."
2. Introduce the Term: When introducing the term "zero-coupon bond" in a sentence, it is helpful to provide some background information or explain its purpose. This will give the reader a better understanding of the concept. For instance: - "Investors seeking long-term growth may consider investing in zero-coupon bonds, which offer a unique way to accumulate wealth over time."
3. Explain the Mechanics: To enhance comprehension, it is beneficial to explain how zero-coupon bonds work in a sentence. This can help the reader grasp the concept more easily. For example: - "Unlike traditional bonds that pay periodic interest, zero-coupon bonds are purchased at a discount and provide a lump sum payment at maturity."
4. Provide Examples: Using examples can make the concept of zero-coupon bonds more relatable and understandable. Consider incorporating examples in your sentence to illustrate the application of the term. For instance: - "John invested in a zero-coupon bond with a face value of $10,000, purchasing it for $8,000. At maturity, he received the full face value, earning a $2,000 profit."
5. Compare and Contrast: Drawing comparisons or highlighting differences between zero-coupon bonds and other types of bonds can help readers differentiate and comprehend the term better. For example: - "Unlike traditional bonds that provide regular interest payments, zero-coupon bonds offer investors the advantage of compounding interest over time."
6. Discuss Benefits and Risks: When using the term "zero-coupon bond" in a sentence, it can be helpful to mention the benefits and risks associated with this type of investment. This provides a more comprehensive understanding of the term. For instance: - "Investing in zero-coupon bonds can be advantageous for individuals looking to save for long-term goals, such as retirement. However, it is important to consider the potential risks, such as interest rate fluctuations."
7. Highlight Real-World Applications: To make the term more practical, consider mentioning real-world applications or scenarios where zero-coupon bonds are commonly used. This can help readers relate to the term and understand its relevance. For example: - "Zero-coupon bonds are often utilized by municipalities to finance large infrastructure projects, as they allow for long-term funding without the burden of regular interest payments."
In conclusion, effectively using the term "zero-coupon bond" in a sentence requires providing a clear definition, explaining its mechanics, offering examples, comparing it to other types of bonds, discussing benefits and risks, and highlighting real-world applications. By following these tips, you can ensure that your usage of the term is accurate and informative.
The word usage examples above have been gathered from various sources to reflect current and historical usage of the word Zero-coupon Bond. They do not represent the opinions of TranslateEN.com.