Zero Coupon Municipal Bonds
- Topics:
- Commercial Lending
- Tags:
- Coupon,
- Finance,
- Municipal Bond,
- Operational Accounting,
- Payment
- Source:
- The Bond Market Association
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Overview: Zero coupon bonds were introduced to the fixed income market in 1982. They were — and are — a unique concept in the marketplace. 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 — at maturity — that is equal to the principal invested plus the interest earned, compounded semiannually, at a stated yield.
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Format: PDF | Size: 597KB | Date: Jan 2003 | Pages: 13
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