
Zero-Coupon Bond: Definition, How It Works, and How to Calculate
Aug 15, 2024 · What Is a Zero-Coupon Bond? A zero-coupon bond is an investment in debt that does not pay interest but instead trades at a deep discount.
Advantages and Risks of Zero-Coupon Treasury Bonds - Investopedia
Jul 4, 2024 · A zero-coupon bond pays no coupon or interest payment. Investors earn a return from zeros because they buy the bond at a discount to face value and then are paid the face …
Zero-coupon bond - Wikipedia
A zero-coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. [1] Unlike regular bonds, it does not make periodic interest …
Zero-Coupon Bonds | Definition, Types, Features, Pros & Cons
Sep 1, 2023 · Definition of Zero-Coupon Bonds. Zero-coupon bonds is a unique type of debt security that does not make periodic interest payments to bondholders. Instead, these bonds …
The One-Minute Guide to Zero Coupon Bonds - FINRA.org
Most bonds make regular interest or "coupon" payments—but not zero coupon bonds. Zeros, as they are sometimes called, are bonds that pay no coupon or interest payment. With a zero, …
Coupon Bond Vs. Zero Coupon Bond: What's the Difference? - Investopedia
Dec 18, 2023 · A zero-coupon bond does not pay coupons or interest payments like a typical bond does; instead, a zero-coupon holder receives the face value of the bond at maturity.
Zero-Coupon Bond - Definition, Formula, How It Works
What is a Zero-Coupon Bond? A zero-coupon bond is a bond that pays no interest and trades at a discount to its face value. It is also called a pure discount bond or deep discount bond. U.S. …
Zero Coupon Bond - Investor.gov
Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount …
Zero-coupon bonds: What they are, pros and cons, tips to invest
Sep 18, 2024 · A zero-coupon bond is a type of bond that pays no interest and trades at a discounted face value. The investor pays less than the bond’s face value and later receives the...
Bond Basics: Zero-Coupon Bonds - Kiplinger
Aug 2, 2023 · Zero-coupon bonds are cheaper to invest in than conventional bonds but have some unique characteristics that set them apart. We can help you understand the basics of …