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The time now is 10/12/08 - 08:34

How is a discount bond that pays no interest called?


RealCool.BIZ Forum Index -> Investments & Trading -> Bonds

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lacie
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Joined: 04 Feb 2008
Posts: 6



PostPosted: 05/12/08 - 06:26    Post subject: Reply with quote

Good evening people. My name is Marianne and I would appreciate if you could give me some information about bonds. I know that there are different kinds of bonds, but I am interested in those that pay no interest. How is a discount bond that pays no interest called? Can you tell me something more? Thank you.
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dunc
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Joined: 28 Feb 2006
Posts: 4



PostPosted: 06/11/08 - 00:13    Post subject: Reply with quote

Hi there Marianne. You are right, there are so many types of bonds nowadays. I sometimes find it quite difficult to manage. Well, discount bonds usually pay no interest. What you probably need to know is their second name. They are also known as a zero coupon bonds. Since they bring no interest, they tend to be cheaper than other types of bonds. They usually mature within ten to fifteen years and they can be indexed to inflation. Off course, you can sell them earlier on the market. Well, that would be all from me. I hope that I gave you some valuable information. Bye!
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