Accrual bond - Definition

It is also known as zero-coupon bond. The bond accrues interest and is redeemable upon the Maturity of the bond. The advantage of accrual bond there is no reinvestment Risk, but the disadvantage is that there is no chance to enjoy the effect of increase in the interest rates.

Terms near "Accrual bond "

Accrual of discount
Accrual Swap
Accrued benefit
Accrued dividend
Accrued expense
Accrued interest
Accumulated depreciation.
Accumulated dividend
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