Warning: Cannot declare class Normalizer, because the name is already in use in /home/fincyc5/public_html/wp-content/plugins/cloudflare/vendor/symfony/polyfill-intl-normalizer/Resources/stubs/Normalizer.php on line 20
ZC Indexed Bond – Fincyclopedia
Finance
Zero-Coupon Indexed Bond
March 9, 2021
Islamic Finance
Ujrat
March 10, 2021

An index linked bond that pays no coupon (hence, the zero coupon, ZC), whilst repayment of its principal is linked to inflation (an inflation index). The holder of this bond is entitled to receive one nominal unit adjusted to inflation before maturity.

In which case, the principal is only inflation-linked, while interest is zero.

This kind of bonds was introduced in Sweden.

Leave a Reply