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Investment Dictionary

Atlantic Financial


Investment Word

Zero Coupon Bonds

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Zero Coupon Bonds are bonds that do not pay out interest in regular payments, instead over time value is added to the bond.

Zero Coupon Bonds are named such because many years ago bonds that paid interest in regular installments had physical coupons attached to the bond.
The coupons could be traded in for interest payments.


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zero coupon bonds - definition

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