Exact(8)
IN August, he bought a 7.25percentt coupon bond due in 2011 and issued by Ford Motor Credit.
In the corporate bond category, the managers like a 7.787 percent coupon bond issued in December 1991 by GE Capital and due in December 2006.
The managers paid 87 euros for each 100 euros in face value for the 4.75 percent coupon bond, due in June 2004.
"To strip out," says Prof. Robert Jarrow of Cornell, "is to infer the value of the zero-coupon bonds underlying the value of a coupon bond.
Zero Coupon Bond.
A 30-year zero coupon bond would return 50%.
Because they are pure-play zero coupon bond funds.
If so, you'll make 60% on a 30-year coupon bond or 130% on a zero coupon bond.
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