Definition of Z-Bond
What is a Z-Bond
A z-bond is a type of bond that will accrue interest to be added to the principal balance, which becomes payable after satisfaction of all other bond classes. A z-bond is also known as an ABC bond, accrual bond or accretion bond.
Glossary of Terms and Phrases
A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.
We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.