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Zero coupon bonds

Zero coupon bonds

What is a zero coupon bond?

A zero coupon bond is a bond that does not make interest payments.

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This type of bond is issued at a discount to its maturity value and is redeemed at the maturity value, generating a return for the investor.

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UK Treasury bills are an example of a zero coupon bond.

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Zero coupon bonds can be issued by governments, municipalities, and companies.

More terms

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Equity

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Spot Rate

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Limit order

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Hypothesis Testing

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Yield to maturity

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Account balance

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Earnings per share

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