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Introduction to Zero Coupon Securities

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You won't get regular interest payments from them, but you will buy them at a nice discount. Let's look at how zero coupon bonds work.

What you will learn

  • Zero Coupon Securities
  • Types of Zero Coupon Securities
  • Strategic Considerations of Zero Coupon Securities

What do you know?

Introduction to Zero Coupon Securities

Zero coupon bonds are sold by a variety of different issuers.

Zero coupon bonds offer you a deal: give up the interest payments you would get from owning other kinds of debt instruments and get a lump sum at the end—as long as the issuer does not default!