BinaryMage,
A short-term zero coupon bond (often called a bill) does not have coupons (often referred to in BTC world as divedends). It is issued at something less than face value and redeemed at par (face) value at maturity.
The PPT bonds are an example of a zero coupon bond. Where there are no coupons paid and the bond is redeemed at a price greater than it is issued.
http://en.wikipedia.org/wiki/Zero-coupon_bond
A short-term zero coupon bond (often called a bill) does not have coupons (often referred to in BTC world as divedends). It is issued at something less than face value and redeemed at par (face) value at maturity.
The PPT bonds are an example of a zero coupon bond. Where there are no coupons paid and the bond is redeemed at a price greater than it is issued.
http://en.wikipedia.org/wiki/Zero-coupon_bond
Alright, thanks for clarifying. I'm not too experienced with financial security lingo. What price would you be planning on issuing at, and what would the bond be redeemable for?
Hey - we all have to learn things
Pricing is uncertain right now. As mentioned, I am running the numbers but it would be in the range of 5.0-5.5 per cent compounded monthly.
So using 5% monthly compounding as an example for a 6 month duration...
Offer Price: 0.75
Face Value: 1.00507173
