Capital Accumulation for Long-Term Savings Such as a Retirement or an Education Fund
- Topics:
- Investment and Capital Markets
- Source:
- The Bond Market Association
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Overview: This paper summarizes information for the investor about Long-Term Savings. To understand fully how zero coupon municipal bonds work, it is important first to become acquainted with the principal characteristics of both municipal bonds and the zero coupon structure. While most municipal bonds provide semiannual interest payments, zero coupon bonds, as their name suggests, have no "coupon," or periodic interest payments. Instead, the investor receives one payment ù at maturity ù that is equal to the principal invested plus the interest earned, compounded semiannually, at a stated yield. This article takes a look at zero coupon bonds.
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Format: PDF | Size: 598KB | Date: Dec 2003 | Pages: 13
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