# What is a bond coupon?

# How long does it take for a no coupon bond to be redeemed?

I think longer because they express sometimes.

# 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…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.

# Do bonds have different coupon rates?

Answer .
Yes.

# What is a Zero coupon bond?

A bond that does not pay interest until the point in time when itreaches maturity.

# What is usually a better investment- a coupon bond or discount bond?

Coupon bond= pay $A now. receive future periodic coupon and at maturity receive face value Discount bond= pay $B now. receive nothing until maturity where you receive face …value. B is always less than A. That is, you pay less upfront investing in Discount Bond compared to Coupon Bond. But, you don't receive periodic cash flow by investing in Discount Bond. So clearly which is better depends on how much money you have at present and your expectation of future interest rate (going up or down). If you expect interest rate/yield to go down in the future, then clearly you don't want to be sitting on a pile of money and earn meager interest on it. This is called re-investment risk. You risk having unfavorable interest rate to re-invest the cash flow (coupon) you'll get in future. In this case, locking in the current interest rate/yield by buying discount bond is preferable. The same logic apply if you expect interest rate/yield is going to rise, in which case buying a coupon bond is preferable since you can re-invest the cash flow (coupon) you'll get in future at a higher rate. You can't do so with Discount Bond coz you receive no payment and the interest/yield is locked.

# 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…ts maturity value is known as the DISCOUNT. For example, a $100 zero coupon bond maturing in one year priced to yield 10% (in simple terms) would be sold to the investor for $90.91 on the date of issue. The investor would receive no payments from the borrower until maturity, at which time the investor receives the $100 face value.\n.
\n There's another form of zero-coupon bond \n.
\nSome brokerages will take a regular bond with coupons and "strip" it. They'll remove the coupons and sell the corpus of the bond separately from the coupons. \n.
\nA zero-coupon bond that was issued as such will normally have a really long maturity date--five to ten years isn't uncommon. You buy them as long-term investments...if you've got a child who will begin college when she's 19, you might want to buy ten-year zero-coupons that mature as the child enters each year of college.

# What is the size of a long coupon bond?

A long coupon bond is 8.5 x 14.

# What is a coupon bearing bond?

A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any in…terest.

# 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…l

# How much is your zero coupon bond worth?

That would depend on the specifics of the individual bond.

# What is the size of the short coupon bond?

A short coupon bond is 8.5 x 11.

# What is the coupon rate for R153 government bond?

currently it is 7.8%

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# 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…bt obligations. The discount is usually from 50 to 75 percent.

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# 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…00 over 5 years, you would earn 3% p.a.

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# Is a zero coupon bond a junk bond?

depends on the collateral supporting the bond.

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# 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 …discount on a 30 year zero coupon bond will be much greater than on a 10 year zero coupon bond. At maturity bondholders will receive the full face value of the bond which provides bondholders a return. For example, a 30 year zero coupon bond with a face value of $1,000 and sold for $500 would return a $500 profit after 30 years. Holders of zero coupon bonds can sell the bonds at any time before maturity. If an investor bought zero coupon bonds prior to a steep drop in interest rates, the value of the zero coupon bonds would increase and could be sold at a profit.

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In Coupons

# What is the advantage of buying zero-coupon bonds?

The advantage of buying zero-coupon bonds is that when they reach maturity, the investor then receives the full face value of the bond. These bonds became popular in the 1980…'s even though they were first released in the 1960's.