[Hot News] [STOCKS]: What Is A Zero Coupon Bond?

A Zero Coupon Bond is a Bond issued by a company where the company does not pay any periodical interest until the maturity of the bond. But upon maturity, the company would pay more than what was initially deposited by the owner of the Bond.

For example, if a company "abc" decides to issue a Bond at a price value of $500 now with a promise of that bond having a face value of $1000 after 5 years, then we can call this bond as a Zero Coupon Bond as there is no promise of any kind of payment being done by the company during this period of 5 years.

As already mentioned in the previous articles, a Bond is a liability for a company where in if the company liquidates, the Bond owners are guaranteed to get their share of investment back through this liquidity.

[Hot News] [STOCKS]: What Is A Zero Coupon Bond?

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