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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 ...
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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Zero-Coupon Bonds

Zero-coupon bonds is a unique type of debt security that does not make periodic interest payments to bondholders. Instead, these bonds are issued at a discount to their face value, and investors ...
Zero-coupon bonds accrue value over time, offering a low-risk investment for long-term goals. Great for conservative investors, they can help save for college or other future expenses. Available ...
Zero coupon bonds are taxed differently because they don't pay regular interest. Instead, they're sold at a discount and reach full value at maturity. Each year, investors must report "imputed ...