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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...
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.
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.
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 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.
A zero-coupon bond does not pay coupons or interest payments like a typical bond does; instead, a zero-coupon holder receives the face value of the bond at maturity.
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