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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved