Zero coupon bond

[Rozina Akter]

Zero Coupon Bond is a money market instrument. So if the key players (banks, insurance companies and financial institutions) in the money market can enjoy such a tax exemption facility on the income from Zero Coupon Bonds, the Zero Coupon Bond will be more popular and widely used as a source of funding.

[saimonh]

nice post...
Thank you

[Rozina Akter]

Thank you Saimon

[sajib]

A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity.[1] It does not make periodic interest payments, or have so-called "coupons", hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par (or face) value.