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Zero Coupon Bonds-Corporate Bonds

Describe the term Zero Coupon Bonds in Corporate Bonds?

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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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