A zero-coupon bond doesn't pay interest but it trades at a deep discount and it returns a profit at maturity when it's redeemed at full face value.

For instance, if a zero-coupon bond was sold at a $100 discount and matures in four years, its holder would have to pay the applicable bond interest tax rate on $25 worth of the bond's total $100 ...

Typical bonds consist of semi-annual payments costing $25 per coupon. Coupons are usually described according to the coupon rate. The yield the coupon bond pays on the date of its issuance is ...

Using the $1,000 bond mentioned above, you can easily calculate the coupon rate of 2.5% by dividing the annual coupon payment by the face value of the bond; $25 divided by $1,000 is 2.5%.

The issuance on August 21, 2019 of a thirty-one year zero coupon bond at a negative yield was for me like finding the Higgs boson (aka the “God Particle”) was for a particle physicist in 2012.

Using the earlier example of a $10,000 face value bond paying a 5% coupon but with a current face value of $8,333.33, the yield to maturity would be roughly 7.4% if 10 years were remaining until ...

A zero-coupon bond is an investment in debt that does not pay interest but instead trades at a deep discount. ... Zero-Coupon Bond: Definition, How It Works, and How to Calculate.