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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...

   Volatility and interest rate risk: Without regular interest payments to cushion price fluctuations, zero-coupon bonds are more volatile than short-term bonds. In general, the current value of any ...

3. 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.

4. Bootstrapping (finance) - Wikipedia

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

   Given: 0.5-year spot rate, Z1 = 4%, and 1-year spot rate, Z2 = 4.3% (we can get these rates from T-Bills which are zero-coupon); and the par rate on a 1.5-year semi-annual coupon bond, R3 = 4.5%. We then use these rates to calculate the 1.5 year spot rate. We solve the 1.5 year spot rate, Z3, by the formula below:

5. 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.

6. Yield to maturity - Wikipedia

   en.wikipedia.org/wiki/Yield_to_maturity

   Consider a 30-year zero-coupon bond with a face value of $100. If the bond is priced at an annual YTM of 10%, it will cost $5.73 today (the present value of this cash flow, 100/(1.1) 30 = 5.73). Over the coming 30 years, the price will advance to $100, and the annualized return will be 10%. What happens in the meantime?

7. Savings bonds: What they are and how to cash them in - AOL

   www.aol.com/finance/savings-bonds-cash-them...

   Unlike typical bonds that pay interest regularly, a savings bond is a zero-coupon bond, meaning it pays interest only when it is redeemed by the owner. ... These bonds may pay a variable rate if ...