投资 阅读时间:3分钟

The ABCs of Zero Coupon Bonds

At first blush, the idea of a bond that doesn’t pay interest seems oxymoronic. 毕竟, isn’t a bond a debt instrument that pays periodic interest and repays the principal at maturity?1

Zero coupon bonds are indeed debt instruments, but are issued at a discount to their face value, 不支付利息, and pay its face value at time of maturity.

它是如何工作的?

假设, a hypothetical zero coupon bond is issued today at a discount price of $743 with a face value of $1,000, 15年付清. 如果你买这个债券, hold it for the entire term and receive the face-value payment, the difference of $257 represents the interest you earned. In this hypothetical example, the bond’s interest rate would amount to approximately 2 percent.

Zero coupon bonds are predominantly issued by the federal government, ,通常, they are issued with maturities of 10 to 15 years.

Zero coupon bonds are traded on recognized financial markets and exchanges, which may offer investors liquidity in the event they choose not to hold them to maturity.

价格波动

One of the biggest risks of zero coupon bonds is their sensitivity to swings in interest rates. In a rising interest rate environment, their value is likely to fall more than other bonds.

Zero coupon bonds are subject to an unusual taxation in which the receipt of interest is imputed each year, requiring holders to pay income taxes on what is called “phantom income.”

目标日期

For individuals, zero coupon bonds may serve several investment purposes. Zeros may be bought to fund specific future financial obligations, e.g.,大学储蓄. 通过把他们放在一个美国.S. 财政部零, a parent can be assured that the funds are expected to be fully intact to meet this liability.2

和任何投资一样, a zero coupon bond’s appropriateness hinges on your individual needs and circumstances. Understanding some of the basic concepts may help you better assess whether they might have a place in your portfolio.

1. The market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of existing bonds typically falls. If an investor sells a bond before maturity, it may be worth more or less than the initial purchase price. By holding a bond to maturity an investor will receive the interest payments due plus your original principal, barring default by the issuer. 投资s seeking to achieve higher yields also involve a higher degree of risk.
2. U.S. 财政部零 coupon bonds are guaranteed by the federal government as to the payment of principal and interest. 然而, if you sell a 财政部零 coupon bond prior to maturity, it could be worth more or less than the original price paid.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. 所表达的意见及 material provided are for general information, and should not be considered a solicitation for the purchase or 出售任何证券. 版权所有2021 FMG套件.

分享 |

Have A Question About This Topic?

谢谢你!! 哦!

相关内容

从船到经纪人

从船到经纪人

From the Dutch East India Company to Wall Street, the stock market has a long and storied history.

商业周期

商业周期

Understanding the economy's cycles can help put current business conditions in better perspective.

5 Smart Investing Principles

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.