Zero Coupon Bonds Zero coupon bonds, more ordinarily known as strips or zippers, are fixed income securities that unlike other bonds, pay no interest until maturity. This means that miscellany of of paying semi-annual interest like other bonds, the interest is compound throughout the life of the bond and is paid in fitting upon maturity. Zero coupon bonds are ideal long-term investments for corporation who have a specific situation, which calls for a specific middle of money to be acquired at a future date, for the most part ten to twenty years in the future. These bonds offer a great variety of benefits that are attractive to investors who are belief for more of a long-term investment.
They also pose a few drawbacks, but are outweighed by their advantages which make them a sound investment. Zero coupon municipal bonds combine the benefits of the zippo coupon instrument with those of tax-exempt municipal securities and offer the future(a) advantages: pathetic Minimum Investment The first...If you want to get a respectable essay, order it on our website:
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