Zero Coupon Bonds-Corporate Bonds
Describe the term Zero Coupon Bonds in Corporate Bonds?
Expert
Zero Coupon Bonds:
• Corporations sometimes issue bonds which have no coupon payments over its life and merely offer a solo payment at maturity.
• Zero coupon bonds sell well beneath their face value (at a deep discount) since they offer no coupons.
• The most common and regular issuer of zero coupon securities is the U.S. Treasury Dept.
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