Zero-coupon bonds live in the investing weeds, easily ignored by ordinary investors seeking growth for college and retirement. Even fixed-income investors may pass them by, because they don't provide ...
Bonds are often part of many long-term investors’ portfolios because of their ability to add diversification, potentially minimize risk and bring in income. While there are many different types of ...
If you’re looking for an investment that offers predictable long-term returns, you may have come across zero-coupon bonds. But what is a zero coupon bond, and how does it work? Unlike traditional ...
Lisa Smith is a writer with a passion for financial journalism, contributing to popular media outlets like Investopedia and Bloomberg BNA. Suzanne is a content marketer, writer, and fact-checker. She ...
Bonds help add diversity to your portfolio and control risk. But they can be complicated. Zero-coupon bonds are cheaper to invest in than conventional bonds but have some unique characteristics that ...
Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Somer G. Anderson is CPA, doctor of accounting, and an ...
Zero-coupon bonds live in the investing weeds, easily ignored by ordinary investors seeking growth for college and retirement. Even fixed-income investors may pass them by, because they don't provide ...
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What Is a Zero-Coupon Bond?

A zero-coupon bond is a type of bond that does not pay periodic interest — or coupon payments — like traditional bonds. Instead, they are issued at a steep discount and provide a return to the ...