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2. Zero-coupon bonds: What they are, pros and cons, tips to invest

   www.aol.com/finance/zero-coupon-bonds-pros-cons...

   This liability can make zero-coupon bonds less tax-efficient for some investors. Commitment: Zero-coupon bonds are intended to be a long-term commitment, usually spanning 10 to 30 years. For ...

3. What Is a Zero-Coupon Bond? - AOL

   www.aol.com/zero-coupon-bond-173445378.html

   For example, if a zero-coupon bond with a $20,000 face value and a 20-year term pays 5.5% interest, the interest rate is knocked off the purchase price and the bond might sell for $7,000.

4. Zero-coupon bond - Wikipedia

   en.wikipedia.org/wiki/Zero-coupon_bond

   Zero coupon bonds have a duration equal to the bond's time to maturity, which makes them sensitive to any changes in the interest rates. Investment banks or dealers may separate coupons from the principal of coupon bonds, which is known as the residue, so that different investors may receive the principal and each of the coupon payments.

5. Bootstrapping (finance) - Wikipedia

   en.wikipedia.org/wiki/Bootstrapping_(finance)

   The general methodology is as follows: (1) Define the set of yielding products - these will generally be coupon-bearing bonds; (2) Derive discount factors for the corresponding terms - these are the internal rates of return of the bonds; (3) 'Bootstrap' the zero-coupon curve, successively calibrating this curve such that it returns the prices ...

6. Bond convexity - Wikipedia

   en.wikipedia.org/wiki/Bond_convexity

   Although the amortizing bond and the zero-coupon bond have different sensitivities at the same maturity, if their final maturities differ so that they have identical bond durations then they will have identical sensitivities. [7] That is, their prices will be affected equally by small, first-order, (and parallel) yield curve shifts.

7. Coupon (finance) - Wikipedia

   en.wikipedia.org/wiki/Coupon_(finance)

   Zero-coupon bonds are those that pay no coupons and thus have a coupon rate of 0%. [6] [7] Such bonds make only one payment: the payment of the face value on the maturity date. Normally, to compensate the bondholder for the time value of money, the price of a zero-coupon bond will always be less than its face value on any date of purchase ...

8. Bonds vs. bond funds: Which is right for you? - AOL

   www.aol.com/finance/bonds-vs-bond-funds...

   This is because new bonds will be issued with higher coupon rates, making older bonds with lower coupon rates less attractive to investors. The impact of interest rates on bond funds can be ...

9. Yield to maturity - Wikipedia

   en.wikipedia.org/wiki/Yield_to_maturity

   The annual bond coupon should increase from $5 to $5.56 but the coupon can't change as only the bond price can change. So the bond is priced approximately at $100 - $0.56 or $99.44 . If the bond is held until maturity, the bond will pay $5 as interest and $100 par value for the matured bond.