Category Archives: Zero Coupon Bonds

Duration of Zero Coupon Bond and Risk of Default

Duration Of Zero Coupon Bond

The duration of zero coupon bond and the risk of default with the bond are closely linked. The longer the duration of a bond is the higher the risk of a default as well with many bonds. This risk correlation

Current Zero Coupon Bond Rates vs Historical

Zero Coupon Bond Rates

Current zero coupon bond rates can vary, sometimes significantly, depending on whether the bond is a Treasury bond, another municipal choice, or a corporate option. The duration of the bond also plays a large role in the rates offered by

Zero Coupon Bond Calculator: 5 Things You Should Know!

Zero Coupon Bond Calculator

1. A zero coupon bond calculator can help you determine the actual price of this type of bond. These bonds do not receive periodic interest payments and instead are sold at a discount from the face value. You will need

Floating Rate Bonds Risks and Benefits

Floating Rate Bonds

Floating rate bonds offer a number of benefits and these bonds are extremely popular with investors right now because interest rates are low. These bonds also carry a number of risks as well though, and these risks are often ignored

Coupon Bonds Formula

Coupon Bonds

Coupon bonds are bonds which pay a specific interest rate, but what is the formula that will allow you to determine what the coupon payment should be? These bonds are named so because they originally started out with coupons attached,

Zero Coupon Bonds Rates Review

Zero Coupon Bonds

Zero coupon bonds do not have interest payments, also referred to as the coupon, like most bond types do. These may also be referred to as accrual bonds, and they function differently than many other bonds do. Most bonds have

Zero Coupon Municipal Bonds Review

Zero Coupon Municipal Bonds

Normally, investing in municipal bonds returns interest payments on a semiannual basis. Zero coupon municipal bonds work in a totally different way by returning principal payment along with earned interest at the end of their maturity cycle, say, in 20