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

    What Is The Difference Between A Cash Flow Statement And An Income Statement?

    A firm’s cash flow statement measures the sources and uses of its cash. The income statement shows how it is financially performing.
  3. Investing

    What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The statements provide a collection of data about a company’s financial ...
  4. 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.
  5. Investing

    The Essentials Of Corporate Cash Flow

    Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself.
  6. 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.
  7. Investing

    Cash Flow From Operating Activities

    Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements.
  8. Investing

    Why Companies Issue Bonds

    When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation.
  9. Investing

    Evaluating A Statement Of Cash Flows

    The metrics for the Statement of Cash Flows is best viewed over time.
Trading Center