Re: [Quantlib-users] Fixed rate bond

[StephenWong <ste...@gm...>]

Luigi Ballabio wrote:
> 
> 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
> 
> 

Never mind! I misinterpreted what you wrote. 
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