Finance

Shogun Bond

December 10, 2022
Finance

Spatial Transformation

December 10, 2022

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A zero coupon swap (ZC swap) in which payments are reversed. That is the zero coupon payment is made at the beginning of the swap, while interest and principal payments are made over its life. The swap pays the fixed leg at inception.

Functionally, this structure is equivalent to that of a typical loan.

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