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What Is a Zero-Coupon Bond? A zero-coupon bond is an investment in debt that does not pay interest but instead trades at a deep discount.
A zero-coupon bond pays no coupon or interest payment. Investors earn a return from zeros because they buy the bond at a discount to face value and then are paid the face value at the...
A zero-coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. [1] Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero-coupon bond.
A zero-coupon bond is a type of bond that pays no interest and trades at a discounted face value. The investor pays less than the bond’s face value and later receives the full value of the bond ...
Zeros, as they are sometimes called, are bonds that pay no coupon or interest payment. With a zero, instead of getting interest payments, you buy the bond at a discount from the face value of the bond and are paid the face amount when the bond matures.
A zero-coupon bond is a type of bond that pays no interest and trades at a discounted face value. The investor pays less than the bond’s face value and later receives...
Zero-coupon bonds is a unique type of debt security that does not make periodic interest payments to bondholders. Instead, these bonds are issued at a discount to their face value, and investors receive the full face value upon maturity.
Zero-coupon bonds live in the investing weeds, easily ignored by ordinary investors seeking growth for college and retirement. Even fixed-income investors may pass them by, because they...
A zero-coupon bond is a bond that pays no interest and trades at a discount to its face value. It is also called a pure discount bond or deep discount bond. U.S. Treasury bills are an example of a zero-coupon bond.
Zero-coupon bonds, on the other hand, credit you with interest but don't actually pay any until maturity. How do zero-coupon bonds work? The bonds are sold at a substantial discount from the...