2014-09-15T14:44:03+00:00 September 15th, 2014|
Zero Coupon Bonds pay zero interest throughout the bond term. However, you buy the bond at a steep discount that includes the implied interest rate. For example, a $1,000 bond paying 8 percent, might be purchased for $456. At the date of maturity, you’d collect $544 in interest. The Treasury department offers zeros (as they’re commonly called), as do municipalities and some corporations.