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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19, 2015) [hereinafter Zero Coupon Bonds], In contrast, a capital appreciation bond is a bond in which the return on the initial principal amount (or purchase value) is reinvested until the bond matures.
37,604,290 series 2006D third subordinate capital appreciation bonds due June 1, 2060 downgraded to 'B-sf' from 'B+sf'; removed from Negative Watch and assigned a Negative Outlook.
Despite the use of capital appreciation bonds, debt service will remain steady and affordable, with a modest annual growth of around 3% in the next 10 years.
Bond proceeds, together with the 2012B bonds, will be used to refund the series 2002A capital appreciation bonds (CABs) and 2002A current income bonds for debt service savings.
8 million SPS convertible capital appreciation bonds, series 2011C.
NEW YORK -- Fitch Ratings affirms one and downgrades two classes of capital appreciation bonds (CABs) from New York Counties Tobacco Trust V series 2005 as follows:
2006A capital appreciation bonds downgraded to 'BB-' from 'BBB'; Outlook Negative;
Tobacco Settlement Asset-Backed Bonds capital appreciation bonds (CABs):
NEW YORK -- Fitch Ratings has downgraded three classes of tobacco settlement asset-backed bonds capital appreciation bonds from California County Tobacco Securitization Agency (TSA) (Fresno County Tobacco Asset Securitization Authority) series 2006, and revised Rating Outlooks as indicated below:

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