Friday, February 8, 2013

Zero Coupon Bond

●In Zero Coupon Bond, there will be no interest payment during the tenure of the bond
●It will be offered at a huge discount to its Face Value
●It also known as 'Deep Discount Bond'
●The benefit of such bond is instead of interest receipt, it will be offered at discount and redeemed at PAR.
i.e. Redeem Value = Face Value

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