Consider the security composed of one insured Canadian coup on payment receivable in twelve months as a typical example of a riskless zero-coup on bond. The one-year market rate of interest established by today's sales and purchases of this security can be defined in plain English as: the value of a dollar receivable in twelve months as measured in current dollars the price of one current dollar as paid for in dollars receivable in twelve months the number of current dollars required to purchase one dollar receivable in twelve months the number of current dollars required to buy the coupon payment today divided by the number of twelve month dollars constituting the future coupon payment the coupon rate on the underlying mortgage from which the single twelve month coupon payment is sold