Benjamin Scholtz

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Zero Coupon Bond

Zero-Coupon Bond

Apr 08, 20251 min read

  • finance

A Debt Security trading at a discount, yielding profit at maturity when redeemed for its face value. Since zero-coupon bonds provide payment at face value upon maturity, they tend to experience greater price fluctuations in the secondary market than Coupon Bonds.

References

Zero-Coupon Bond: Definition, How It Works, and How to Calculate


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