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Capital Appreciation Bond

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Zero-Coupon Bond
A bond that pays no interest. It is sold at a discount from par and matures at par. These are fairly illiquid investments because they do not benefit from changes in interest rates. However, they tend to be low-risk. Zero-coupon bonds fluctuate in price, sometimes dramatically, with changes in interest rates. Sometimes zero-coupon bonds are issued as such; other times they are bonds stripped of their coupons by a financial institution and resold as zero-coupon bonds. A zero-coupon bond is less formally known as a zero.

capital appreciation bond


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The capital appreciation bonds (CABs) including the convertible CAB are downgraded to the 'B' category, reflecting the higher breakeven increase produced by the model and the longer tenor.
NEW YORK -- Fitch Ratings assigns a rating of 'AA-' with a Negative Rating Outlook to the Deutsche Bank Custodial Receipts, series DBE-288A, DBE-288B, and DBE-288C relating to Metropolitan Pier and Exposition Authority (Illinois) McCormick Place Expansion Project refunding bonds, series 2002A capital appreciation bonds (underlying bond).
NEW YORK -- Fitch Ratings assigns a rating of 'AA-' with a Negative Rating Outlook to the Deutsche Bank Custodial Receipts, series DBE-453 and DBE-476, relating to Metropolitan Pier and Exposition Authority (Illinois) McCormick Place Expansion Project refunding bonds, series 2002A capital appreciation bonds (underlying bond).
 
 
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