plinc business blog

Zero coupon bonds are bonds which do not pay periodic interest payments, or so-called “coupons”. Zero coupon bonds are purchased at a discount from their value at maturity. The holder of a zero coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in the future. Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond… @

Gross margin is an ambiguous phrase that expresses the relationship between gross profit and sales revenue. The ambiguity arises because it can be expressed in absolute terms:

Gross Margin = Revenue - Cost of Goods Sold

Or as the ratio of gross profit to sales revenue, usually in the form of a percentage:

Gross Margin percentage = 100 * (Revenue - Cost of Goods Sold) / Revenue

In everyday speech the word ‘percentage’ is sometimes omitted and this can create confusion… @