1) Income Statement

2) Cash Flow Statement

3) Balance Sheet

Effect on Reported Cash Flows from Zero-Coupon Debt Issuance
Zero-coupon bonds are also referred to as "deep-discount bonds" or "pure-discount instruments". These bonds do not provide any periodic interest payments to the bondholders and are sold at deep discount to the stated par value. These bonds will have the same type of effect on a company's balance sheet, income statement and cash flow statements as that of discount bonds; the only difference is that the effect will be more pronounced because they are issued well below par value as opposed to a slight discount.



Effect Of Changing Interest Rate On Debt Market Value

Related Articles
  1. Investing

    Explaining Original Issue Discount

    An original issue discount is the amount below par at which a bond or other debt instrument is issued.
  2. Investing

    All About Zero Coupon Bonds

    Zero-coupon bonds are bonds that do not make any interest payments (which investment professionals often refer to as the "coupon") until maturity. For investors, this means that if you make an ...
  3. Investing

    Cash Flow Statement: Analyzing Cash Flow From Financing Activities

    The financing activity in the cash flow statement measures the flow of cash between a firm and its owners and creditors.
  4. Investing

    Zero-Coupon Bond

    A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price ...
  5. Investing

    Evaluating A Statement Of Cash Flows

    The metrics for the Statement of Cash Flows is best viewed over time.
  6. Investing

    Understanding Bond Prices and Yields

    Understanding this relationship can help an investor in any market.
  7. Investing

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  8. Investing

    Cash Flow From Financing Activities (CFF)

    Cash flow from financing activities is typically the third and final section of the statement of cash flows. It shows changes to cash resulting from activities such as issuing stocks and bonds ...
  9. Insights

    Corporations Have Been Issuing Larger Bonds (BUD, SHPG)

    The issuance of multibillion dollar bonds are becoming a common occurrence in the market.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center