A private, for profit passenger rail service is active in the US by the end of 2006. This can be due to the complete or partial privatization of Amtrak or a competing for profit business. The business in question must carry paying customers, but the long term viability of the business is not relevant to the claim. Such a business is "private" if it is controlled (and majority owned) by private interests, and is "for profit" (a business category in the US). Finally, the business much have run at least one passenger train with paying customers and must have a total of at least 500 miles of passenger carrying routes. Note that Amtrak (as it was created) was by some parties considered "private" (with majority of common stock owned by private entities) and was a "for profit" corporation, but the Federal government controlled the corporation through ownership of certain Amtrak prefered shares. If no such private entity is created by the claim deadline, and the US passenger rail industry ceases to exist and remains defunct through the end of 2006, then YES coupons will pay 0.
Amtrak has held a legal monopoly on passenger rail transportation since its inception in 1970 to forestall the complete loss of the passenger rail system (which had steadily declined since the mid 40's). Much more recently, the "Amtrak Reform and Accountability Act" of 1997 has required that Amtrak be "financially self-sufficient" by the end of 2002 or face privatization. Also, as part of this deal, Amtrak will purchase all common stock at "face value" by Oct 1, 2002.
Here's some links:
I will judge this claim based on its intent, guided by the details of the wording and discussion on fx-discuss. If there is a conflict between the text and my perception of the claim's intent, I will consult with fx-discuss before rendering a judgement.