Exchange Currency

non-interest-bearing note

A bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value. A non-interest-bearing note has the important advantage of being free of reinvestment risk, though the downside is that there is no opportunity to enjoy the effects of a rise in market interest rates. Also, such bonds tend to be very sensitive to changes in interest rates, since there are no coupon payments to reduce the impact of interest rate changes. In addition, markets for non-interest-bearing notes are relatively illiquid. Under U.S. tax law, the imputed interest on a non-interest-bearing note is taxable as it accrues, even though there is no cash flow. also called zero-coupon bond.

Related information about non-interest-bearing note:
  1. What is non-interest-bearing note? definition and meaning
    Definition of non-interest-bearing note: A bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value.
  2. The Accounting for Non-Interest Bearing Notes Payable |
    If you do not have to make periodic interest payments, you classify the debt as a non-interest bearing note payable. Consult with a certified public accountant, ...
  3. Shamrock Shirt Co.'s non-interest bearing note
    consideration is a non-interest bearing note with an associated right to ... Shamrock accepted a five year, $500000 non-interest bearing note from Erin on ...
  4. Non-Interest-Bearing Note: Definition from
    note that makes no periodic interest payments. Instead, the note is sold at a discount and matures at face value.
  5. non-interest-bearing note
    A type of bond that does not pay coupons, and is sold at a discount to its face...
  6. Business Math : Non-interest Bearing Note
    A non interest bearing note of $2000 is discounted at 12% compounded quarterly for 5 years and 8 months. What are the.
  7. ACC 212
    5) The journal entries to record borrowing money on a non-interest bearing note basis and the repayment of the note follow. F&M bank calculated the interest on ...
  8. Notes Receivable Interest Bearing Vs Non Interest Bearing - YouTube
    Oct 15, 2012 ... Accounting for the recognition (recording) of notes receivable (interest bearing note versus non interest bearing note), note receivable is a ...