Banking and Stock Glossary
Bond that does not pay interest coupons (zero-coupon bond). Instead of periodic interest payments, the difference between the redemption price and the issue price is the yield to maturity. Accordingly, the investor receives only one payment: the amount realized in the case of a premature sale or the amount redeemed at maturity. In general, zero-coupon bonds are issued at a substantial discount (differential) and redeemed at maturity at a price of 100% (at par). Depending on the term, creditworthiness of the borrower and capital market rates, the issue price may be slightly or significantly below the redemption price.
German abbreviation for Zentraler Kreditausschuss. See Central Credit Committee.
German abbreviation for Zentraler Kapitalmarktausschuss. See Central Capital Market Committee.
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