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What Is a Zero-Coupon Bond?

A zero-coupon bond is a type of bond that does not pay periodic interest — or coupon payments — like traditional bonds. Instead, they are issued at a steep discount and provide a return to the ...
Investing is income-centric. Most of what people call fixed-income bonds offer some form of regular dividends, usually monthly interest installments. But would you be interested in a financial ...
Bonds are often part of many long-term investors’ portfolios because of their ability to add diversification, potentially minimize risk and bring in income. While there are many different types of ...
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If you’re looking for an investment that offers predictable long-term returns, you may have come across zero-coupon bonds. But what is a zero coupon bond, and how does it work? Unlike traditional ...
Zero-coupon bonds are sold at a discount and pay no interim interest, maturing at face value. These bonds carry high interest rate and inflation risks, amplifying potential losses. Despite risks, ...