Zero Coupon Bonds
A Zero Coupon Bond is a debt security that doesn’t pay interest (a coupon) the way a normal bond would. Instead the security is sold at a discount to face value and cheapest viagra steadily accrues interest until it reaches maturity (face value). A common zero coupon bond is buy cheapest online viagra a Treasury STRIP, derived from the fact that the security is “stripped” of the coupon and then sold as two different securities.
The formula for calculating zero coupon bonds is:
Zero Coupon Bond Value = F/(1+r)^t
F = Face Value of Bond
r = rate or yield
t= Time to Maturity
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