Deferred interest bond

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.
References in periodicals archive ?
Series A and C will include current and deferred interest bonds while series B will be mini deferred interest bonds.
Principal amounts of capital appreciation and deferred interest bonds are based on the value at initial issuance.
Dated July 2, the bond issues will include current interest bonds, capital appreciation bonds and deferred interest bonds, which together mature 2006-2042.
High Yield Master II Constrained Index is a market value-weighted index of all domestic and yankee high-yield bonds, including deferred interest bonds and payment-in-kind bonds and securities.
The refunding bonds will consist of current interest bonds, capital appreciation bonds and deferred interest bonds and provide debt service relief to the authority in fiscal years 2011 through 2015 and extend bond maturities from 2042 to 2050; additional restructuring for debt service relief is expected in the future.
85 deferred interest bonds in 2003-16 and $40,990,000 current interest term bonds due in 2019,2023 and 2028), $686,496 1998 series E deferred interest bonds due 2005-09, and $14,531,048.
Series B and 2001-2016 Series A maturities are deferred interest bonds and are not callable.
50 deferred interest bonds due 2006-21 and term bonds, $24,035,000 due in 2026 and $30,821,000 in 2031.