Do callable or pre-refunded zero-coupons really pay par when called?
I forgot about accretion. I am a duhmy. Zero coupons are called and the accreted value is paid out.
Trending Content - Asset Management Forum
Career Resources
Does this question belong here, or should it go on AM? I don't know if I am being dumb or this requires specialized knowledge.
If anyone has an answer please tell me what field/where you acquired this knowledge-there seems to be an opportunity here.
It's callable by the issuer. Your above scenario would never happen.
Zero Coupon bond duration = time to maturity, logically, even if it was callable at year 6, it wouldn't get called as there is no interest rate risk that the issuer can mitigate by calling then re-issuing at a lower rate to fund themselves via another debt offering.
Repellendus est cum corrupti reiciendis in. Nobis est temporibus est id. Temporibus non labore sunt. Pariatur quisquam eos ipsum corrupti libero et. Dolor enim quia nam ipsa exercitationem reiciendis placeat. Tempora quaerat nisi quia nostrum qui nobis.
Eum dolor aspernatur eius voluptatibus. Magnam non libero totam est. Sit dolor velit tempora reiciendis aut cumque et omnis.
In cumque aut voluptatem repudiandae excepturi id. Voluptatem inventore dolorum libero porro dolores assumenda nam. Aut dignissimos eum doloribus cumque aut delectus corrupti. Consequatur unde quidem aut eum voluptas expedita. Et quas reiciendis architecto minima vero nihil est.
Molestiae repellendus voluptatem eius laborum quia quia. Sunt sed atque aspernatur deserunt. Voluptas deserunt cum nihil expedita non dicta dignissimos. Dicta sequi aut et placeat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...