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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     If the 2 5 years are exactly the same with the exception of having coupons (same lender, same claims, same everything) then yes you should b

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 associat

What are zero-coupon debentures or bonds?

    A 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 be

Distinguish between deep discount bond and zero coupon bond?

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

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 Gul

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.

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

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 $10

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 a  discount to face value. An investor holding zero coupon bonds is  paid the full face value when the zero coupon