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Zero Coupon Bond

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See also: Acronyms... Bond Glossary... Buzzwords... Glossary of Technical Analysis... Life Insurance Glossary... (edit)


General

Zero Coupon Bond does not has any interest rate, but sells at a discount to their Face Value. Upon maturity the investor gets the amount indicated as the Face Value, and the difference between the Face Value and the purchase price (at the discount) is the return (or profit) on such Bonds.

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