# What is a Zero coupon bond?

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A bond that does not pay interest until the point in time when it reaches maturity.
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# Can you compute the price of a 5-year zero coupon bond from 2 5 year coupon bonds?

Five-Year Zero Coupon \n. \nIf the 2 5 years are exactly the same with the exception of having coupons (same lender, same claims, same everything) then yes you should be ab

# How or where can you cash in a tiger zero coupon bond?

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

# What are zero-coupon debentures or bonds?

\n. \nA zero coupon bond pays no interest. Thus the market price for such a bond is always LESS than the maturity (face) value. The amount by which the bond is priced below i

# How is Modified Duration calculated for a Zero Coupon Bond?

3 years zero coupon bond. face value \$100 and present market value\$75. What will be its Macualay Duration and Modified Duration?

# Is zero coupon bond more sensitive to change in interest rate than fixed coupon bond?

The zero coupon bond is more sensitive to change in rate (inflation) because the market value is not based on a fixed coupon.

# Distinguish between deep discount bond and zero coupon bond?

the main difference between deep discount bond and zero coupon bondis that in case of zero coupon bond no int is payable periodicallywhile in case of deep discount bond int is

# What is non-zero coupon bonds?

if a bond has finite maturity or limited maturity then we must consider not only the interest rate stream but also the maturity value (face value). regards Sajida Gu

# How do investors make money on zero-coupon bonds?

The bond sells at a discount from its face value--sometimes a BIG discount. At the date of maturity, the bond will give you the full face value.

# How much is your zero coupon bond worth?

That would depend on the specifics of the individual bond.

# Why do people like zero coupon bonds?

Zero coupon bonds are sold at a price well below face value. Thus, these bonds are appealing to the small investor because they can be bought far more cheaply than ordinary de

# How are investors in zero coupon bonds compensated for making such an investment?

They are sold at discount and mature to face value over time.

# What are the interest rates for zero coupon bonds?

They pay no 'coupon' which is the income paid periodically. You make a return by buying at a discount. As an example, if you buy a zero coupon bond for \$86.26, maturing at \$1

# Is a zero coupon bond a junk bond?

depends on the collateral supporting the bond.

# How do bondholders get a return on zero coupon bonds?

Zero coupon bonds do not pay interest and are therefore sold at a steep discount to face value depending on the maturity date of the bond. Due to the time value of money, the

# What is the taxation of zero coupon bonds held to maturity?

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
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# What is so special about Zero Coupon Municipal Bonds?

Zero Coupon Municipal Bonds are special because, unlike other bonds, they have no periodic interest payments. Rather, the investor receives one payment at maturity. This payme
In Coupons