American Corporate Accrual Receipts

American Corporate Accrual Receipts

Also called ACARS, a corporate bond whose coupons have been separated from the principal. ACARS therefore pay no interest. They are sold at a significant discount from par and mature at par. ACARS fluctuate in price, sometimes dramatically, because changes in interest rates make them more or less desirable. See also: zero-coupon bond, STRIPS.
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