DEFINITIONS
By Staff Reporters
SPONSOR: http://www.MarcinkoAssociates.com
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Zero-coupon securities (aka zeros) are debt securities [bonds] that, unlike most of their debt security counterparts, make no periodic interest payments to investors. Instead, they are sold at a deep discount (with an imputed interest rate priced into the discount), then redeemed for their full face value at maturity.
CITE: https://www.r2library.com/Resource/Title/0826102549
When held to maturity, a zero’s entire return comes from the difference between its purchase price and its value at maturity.
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Filed under: iMBA, Inc., Portfolio Management, Investing, Glossary Terms, iMBA, Marcinko Associates | Tagged: iMBA, Marcinko, debt securities, zeros, zero coupons, zero bonds, zero coupon bonds, Zero-coupon securities | Leave a comment »














