FOLIO Ontology

Identification

IRI:
https://folio.openlegalstandard.org/RC7s5f75QCH3uGxumC1UEv0
Label Zero Rate Interest Payment
Preferred Label Discounted Interest Payment
Identifier N/A
Alternative Labels
Pure Discount Bond Zero-Coupon Bond

Definition

A Zero Rate Interest Payment, also known as a Discounted Payment, is a financial arrangement where the borrower does not make periodic interest payments, but instead pays a lump sum at maturity that includes both the principal and the interest. The interest, in this case, is represented by the difference between the amount received at issuance and the higher amount paid at maturity, effectively being "discounted" from the face value.

Class Relationships

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See Also

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Parent Class Of 0

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Additional Information

Metadata

Comment

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Description

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Notes

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Editorial Information

History Note

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Editorial Note

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Deprecated

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Source and Origin

No source or origin information available