A Zero Coupon Bond Is A Bond That Pays No Interest And Is Offered

FAQ?

Do zero-coupon bonds pay interest?

Instead of getting interest payments, with a zero you buy the bond at a discount from the face value of the bond, and are paid the face amount when the bond matures. For example, you might pay $3,500 to purchase a 20-year zero-coupon bond with a face value of $10,000.

The One-Minute Guide to Zero Coupon Bonds | FINRA.org

www.finra.org > investors > insights > zero-coupon-bonds

What kind of bond is a zero-coupon bond?

A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

Zero-Coupon Bond - Investopedia

www.investopedia.com > Bonds > Fixed Income Essentials

Is a zero-coupon bond?

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 the investor will receive when the bond "matures" or comes due.

Zero Coupon Bond | Investor.gov

www.investor.gov > introduction-investing > investing-basics > glossary

Is a zero-coupon bond a deferred interest bond?

Deferred interest bonds pay their accrued interest as a lump-sum amount at a later date rather than as periodic coupons. Zero-coupon bonds and toggles notes are two types of deferred interest bonds.

Deferred Interest Bond Definition - Investopedia

www.investopedia.com > terms > deferredinterestbond

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