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    Zero Coupon Bond

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    What is the "zero coupon bond"? How it is issued, valued in the market, and which investor should consider a zero coupon bond?

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    https://brainmass.com/business/bond-valuation/zero-coupon-bond-253087

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    Zero coupon bond is a bond that pays no annual interest but is sold at a discount below par, thus providing compensation to investors in the form of capital appreciation. In other words, these bonds pay no coupons at all, but are offered at a discount below their par values and hence provide capital appreciation rather than interest income.

    For tax ...

    Solution Summary

    This solution defines zero coupon bonds and discusses how it is issued, valued in the market and what investor should consider a zero coupon bond.

    $2.19

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