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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. 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. 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. In two ...

5. 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. The bond is also nontransferable, so it can ...

6. Bootstrapping (finance) - Wikipedia

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

   In finance, bootstrapping is a method for constructing a (zero-coupon) fixed-income yield curve from the prices of a set of coupon-bearing products, e.g. bonds and swaps. [ 1 ] A bootstrapped curve , correspondingly, is one where the prices of the instruments used as an input to the curve, will be an exact output , when these same instruments ...

7. Risk-free bond - Wikipedia

   en.wikipedia.org/wiki/Risk-free_bond

   A unit zero-coupon bond maturing at time is a security paying to its holder 1 unit of cash at a predetermined date in the future, known as the bond's maturity date. Let B ( t , T ) {\displaystyle B(t,T)} stand for the price at time t ∈ [ 0 , T ] {\displaystyle t\in [0,T]} of a bond maturing at time T {\displaystyle T} .

8. Bond plus option - Wikipedia

   en.wikipedia.org/wiki/Bond_plus_option

   In finance, a Bond+Option is a capital guarantee product that provides an investor with a fixed, predetermined participation to an option. Buying the zero-coupon bond ensures the guarantee of the capital, and the remaining proceeds are used to buy an option.

9. 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?