as the current interest rates of the market may change. Here again, the issuer is saved of the interest outflow. After solving the equation, the original price or value would.73.In other words, its a bond that sells for less than its face value and does not make coupon code reduc ameublement c discount payments or periodic interest payments during its life. About edit, zero Coupon Bond/About, share! These bonds are sold at a discount dont pay a standard monthly interest percentage like normal bonds. In other words, a 1,000 bond might sell for 1,100. Zero coupon bond can be of any duration, can be from one year to 10 years. By the time the bond actually hits the public, interest rates have usually changed.
A 1,000 bond might only sell for 900. External resources, if you want to add personal links, please do that on your user page (you can also write your profile there). What is the definition of zero coupon bonds? Unfortunately, it isnt that easy.