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Capital Appreciation Bond

Defined in 1 dictionary — U.S. Code

United States Code

48 U.S.C. § 2231 — in this subchapter

The term "Capital Appreciation Bond" means a Bond that does not pay interest on a current basis, but for which interest amounts are added to principal over time as specified in the relevant offering materials for such Bond, including that the accreted interest amount added to principal increases daily.