-
Zero Coupon Bond
- Author(s):
- Tim Xiao (see profile)
- Date:
- 2021
- Group(s):
- Business Management
- Subject(s):
- Economics
- Item Type:
- Presentation
- Tag(s):
- bond, zero coupon bond, bond valuation
- Permanent URL:
- http://dx.doi.org/10.17613/d302-vj62
- Abstract:
- Zero coupon bonds are issued at a deep discount and repaid the face value at maturity. The greater the length of the maturity is the cheaper price a bond has. Unlike other bonds, the investor’s return is the difference between the purchase price and the face value. An investor preferring a long-term investment may purchase zero coupon bonds such as saving money for children’s college tuition. The deep discount helps the investor grow a small amount of money into a sizable sum over several years. Normally investors buy zero coupon bonds when interest rates are high.
- Notes:
- https://alanwhite1203.github.io/FiZeroBond-17.pdf
- Metadata:
- xml
- Status:
- Published
- Last Updated:
- 2 years ago
- License:
- All-Rights-Granted