A zero-coupon bond is a type of bond that does not pay periodic interest — or coupon payments — like traditional bonds. Instead, they are issued at a steep discount and provide a return to the ...

What Is Zero-Coupon Inflation Swap? A zero-coupon inflation swap is a type of financial derivative instrument used to hedge or speculate on the impact of inflation. In this swap agreement, one party ...

Investing is income-centric. Most of what people call fixed-income bonds offer some form of regular dividends, usually monthly interest installments. But would you be interested in a financial ...

Most people think of bonds as being appropriate for those who need regular current income without a huge amount of risk. Yet some bonds are structured specifically not to pay income currently. The ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Somer G. Anderson is CPA, doctor of accounting, and an accounting ...

Bonds are often part of many long-term investors’ portfolios because of their ability to add diversification, potentially minimize risk and bring in income. While there are many different types of ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

If you’re looking for an investment that offers predictable long-term returns, you may have come across zero-coupon bonds. But what is a zero coupon bond, and how does it work? Unlike traditional ...

Zero coupon bonds are taxed differently because they don't pay regular interest. Instead, they're sold at a discount and reach full value at maturity. Each year, investors must report "imputed ...

Zero-coupon bonds are sold at a discount and pay no interim interest, maturing at face value. These bonds carry high interest rate and inflation risks, amplifying potential losses. Despite risks, ...