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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 ...