The borrower also buys a 30-year zero-coupon bond
that will mature with a face value of $100,000 - the amount of the interest-only mortgage - and places this zero in trust in favor of the lender.
Although Eldredge did not discuss content, it is interesting to note that in the article, Quinn referred to zero-coupon bonds
as "bum college investments" -- in agreement with College Savings Bank's rationale that zeros are not appropriate investments for college savers.
American Century Target 2030 is part of the series of American Century Target Funds, which provide investors easy access to the performance of zero-coupon bonds
without brokerage commissions.
The db x-trackers II MTS Ex-Bank of Italy Aggregate ETF gives investors the opportunity to invest in fixed-rate and zero-coupon bonds
with a maximum maturity of twelve months, and also in variable coupon bonds.
are traded at a deep discount and the profit is realized when the bonds are redeemed at maturity for their full face value.
The idea to issue zero-coupon bonds
linked to a lower inheritance tax was promoted by Shizuka Kamei, chairman of the ruling Liberal Democratic Party's Policy Research Council, and some other LDP and government officials as a way to help keep long-term interest rates from rising, thereby working in favor of the stock market.
Treasury zero-coupon bonds
, at about 5 percent interest,'' said Gross, a certified financial planner with Strategic Financial in Thousand Oaks.
Federal agencies such as the Federal Home Loan Bank System and the Federal Home Mortgage Corporation (Freddie Mac) began issuing zero-coupon bonds
in June 1997.
Currently, the fund owns primarily zero-coupon bonds
which are scheduled to mature in or near 2001.
Many investors have discovered to their sorrow that zero-coupon bonds
, securities that make only a single cash payment at maturity, are subject to substantial fluctuations in market values whenever even relatively modest changes in interest rates occur.
The other type are Zero-Coupon bonds
, which reached approximately EGP 59.
Another option is to invest in zero-coupon bonds
(See "Getting something for nothing," Moneywise, April 2000).