Examlex
Give two examples of assets that may be valued at fair value as opposed to historical cost.
Zero-Coupon Bond
A debt security that does not pay interest but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
Coupon Rate
A bond's yearly interest payout rate, described as a percentage of its face value.
Coupon Rate
The annual interest rate paid on a bond's face value, indicating the amount of periodic payments to the bondholder.
TIPS Bond
Treasury Inflation-Protected Securities are U.S. government bonds that are indexed to inflation in order to protect investors from the negative effects of rising prices.
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