(1) A measure of the income generated by a bond. The amount of interest paid on a bond divided by the price. (2) The rate of discount which makes the present value of the stream of future returns plus the terminal value of the asset equal to the current market price of the asset.

Zero Coupon Bond

A bond issued at a discount (i. e. below par value), earning no interest but redeemable at its par value, thus providing a guaranteed capital gain.

Bank-PO General-Awareness- DoorstepTutor List of Programs

Detailed Explanations to 1311 Questions

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 1311 questions. Access all new questions we will add tracking exam-pattern and syllabus changes.

View Sample Explanation or View Features or

Rs. 500.00 or

305 Must-Know Terms

Learn about important personalities and terminology systematically arranged in topics & updated regularly.

Read now asbolutely FREE!

Sign In