Zero Coupon Convertible Debt

Convertible bonds which are typically puttable to the issuer during the early years of their lives and are convertible into the issuer's common stock on terms calculated to provide a return somewhat less than the return on common stock with significantly reduced risk. In the United States, the issuer has been able to deduct an implied interest payment even if the instrument is converted and no interest is actually paid. See Liquid Yield Option Note (LYON).

Glossary * Z