Business and Personal Finance Dictionary

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• ZENS
  
  Zero-coupon exchangeable notes. Equity-linked notes that pay at maturity the greater of 100% of the appreciated value of original principal invested in stock or the original principal amount. Any time before maturity, the bondholders can exchange the bonds for 95% of the appreciated value of the corresponding stock. The bondholders pay for their embedded options by accepting a lower coupon plus quarterly dividend payments. ("RELIANT ISSUES $1b IN EQUITY-LINKED NOTES," Power Finance & Risk, 9/27/99.)
  
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