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Deferred Interest Bond

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Deferred interest bond
A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond.

Deferred Interest Bond
A bond that pays no coupons until a certain point in the future. An example is a zero-coupon bond, which pays no interest at all, but the par value one receives at maturity provides the equivalent.


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Series A and C will include current and deferred interest bonds while series B will be mini deferred interest bonds.
Dated July 2, the bond issues will include current interest bonds, capital appreciation bonds and deferred interest bonds, which together mature 2006-2042.
50 deferred interest bonds due 2006-21 and term bonds, $24,035,000 due in 2026 and $30,821,000 in 2031.
 
 
 
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