How do you cash in a zero coupon bond from 1984 with a maturity date of may 2009?
The bond has matured so if you're the owner of the bond you should have already received payment. If you haven't, contact the issuer to see if there's an error or the law firm that's handling that issuer's bankruptcy.
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Go to your local discount broker, (Schwab, Ameritrade, E*trade, Scottrade) open an account and they will cash it in or liquidate it for you. There will be a fee associated wit…h the transaction. Shop around, prices vary. If they can't (or won't) do it, have them give you the name and address of the transfer agent. You can send it to them to liquidate as well. Good luck. (MORE)
A zero coupon bond is a bond which pays no interim cashflow (i.e. coupons). We usually price on the basis of percentage of Face Value (i.e. $100). So if you expected 5% retu…rn, semi annually, over the 3 years remaining on the life of a ZC Bond, the price would be; 100/(1+Yield/frequency)^(TermXfrequency) 100/(1+5%/2)^(3X2) = $86.23 So you'd pay $86.23 now and get $100 back in 3 years. If so, then your return would be 5% s.a. (MORE)
Zero coupon bonds issued by the US Treasury are issued at adiscount to face value. An investor holding zero coupon bonds ispaid the full face value when the zero coupon bond m…atures. The difference between the purchase price and the maturity value isknow as the original issue discount which represents the interestearned on the zero coupon bond. Although a zero coupon bond does not pay annual interest, aninvestor must pay taxes each year based on the imputed receipt ofincome. Since the investor is not receiving interest paymentsduring the life of the bond, taxes would be paid on interest incomenot actually received until bond maturity. Due to the yearly taxliability on imputed interest, it makes sense for most investors tohold zero coupon bonds in a tax deferred retirement account. The interest earned on zero coupon bonds issued by the US Treasuryare exempt from state and local taxes. (MORE)