Re: [Quantlib-users] Fixed rate bond

[Luigi B. <lui...@gm...>]

On Tue, Jan 10, 2012 at 8:16 PM, StephenWong <ste...@gm...> wrote:
> A fixed rate bond with all coupons except that last paying nothing? How is
> that going to help? You lost me.

He wants no payments until maturity, at which point there's a coupon
plus redemption.
Unless I misunderstood you, you proposed to use a bond with regular
yearly coupons and subtract a shorter one; this makes all coupons null
except the last, as the payments from the two bonds cancel out (you
then need another zero-coupon to balance the extra redemption).
What I was saying is that, instead of multiple bonds, he can use a
single bond and specify explicitly that the first coupons don't pay
anything.

Luigi