Dictionary of Business Terms: deferred interest bond
deferred interest bond
bond that pays interest at a later date; for example, a zero coupon bond, which pays interest and repays principal in one lump sum at maturity. Such bonds automatically reinvest the interest at a fixed rate.
Dictionary of Finance and Investment Terms: deferred interest bond
deferred interest bond
bond that pays interest at a later date. A zero coupon bond, which pays interest and repays principal in one lump sum at maturity, is in this category. In effect, such bonds automatically reinvest the interest at a fixed rate. Prices are more volatile for a deferred interest bond than for a current coupon bond.
