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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deferred-interest bond
Step-up bond

References in periodicals archive ?

* The structure of the bonds has features such as a pooled bond program or variable rate debt, or they are deferred interest bonds.

Ensuring a successful bond sale

* Deferred Interest Bonds. Bonds in which interest payments are fully or partially deferred in the first few years (usually 3-7 years).

What the accountant must know about fixed income (debt) securities

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