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Essay

Zero Coupon Bonds

Essay specific features

 

Issue:

Business

 

Written by:

William M

 

Date added:

August 22, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1488

 

Was viewed:

3388 times

 

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Essay content:

Investors purchase zeros for much less than their face value, which is typically in increments of $5000, however, zero-coupon bonds with face values of $1000 are also sold. The greater the number of years a zero-coupon bond has until maturity, the less an investor has to pay for it. The reason of such a low initial investment is another benefit of zeros, compounded interest...
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The reason of such a low initial investment is another benefit of zeros, compounded interest. The small initial dollar outlay makes zeros attractive investments for many investors. It allows investors to put aside a modest amount of money today and know exactly how much they will receive at a specific future date...
displayed 300 characters

General issues of this essay:
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