Can you tell me how zero coupon bond work in India and what is procedure to invest in bonds as well provide me best zero coupon bonds to invest.
Share
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Can you tell me how zero coupon bond work in India and what is procedure to invest in bonds as well provide me best zero coupon bonds to invest.
A zero coupon bond is a debt instrument wherein the issuer does not make any coupon payment but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. A zero-coupon bond will usually have higher returns than a regular bond with the sameRead more
A zero coupon bond is a debt instrument wherein the issuer does not make any coupon payment but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.
A zero-coupon bond will usually have higher returns than a regular bond with the same maturity because of the shape of the yield curve.
See lessZero-coupon bonds, also called "interest-rate-sensitive" bonds, are a type of debt security that doesn't pay out any interest until it matures. Instead of paying regular interest payments over time, the issuer pays back the full price at maturity. The investment return comes from the difference betwRead more
Zero-coupon bonds, also called “interest-rate-sensitive” bonds, are a type of debt security that doesn’t pay out any interest until it matures. Instead of paying regular interest payments over time, the issuer pays back the full price at maturity. The investment return comes from the difference between the purchase price and the face value on maturity. The investor buys these bonds at a discount to their face value and receives the full face value upon maturity.
See less"Zero coupon bond" refers to a type of corporate bond that pays no coupon payments, but the holder receives the face value of the security at its maturity date. In India, zero coupon bonds are issued by various government-owned companies as well as private entities. The only difference is that the fRead more
“Zero coupon bond” refers to a type of corporate bond that pays no coupon payments, but the holder receives the face value of the security at its maturity date. In India, zero coupon bonds are issued by various government-owned companies as well as private entities. The only difference is that the former is paid annually whereas the latter may be paid semiannually or annually depending on the company’s preference.
See lessZero coupon bonds (also called "zero coupon bonds") are a type of financial instrument, which is a type of security that has no regular interest payments. There are also many types of zero-coupon securities, including equity securities, debt securities, and derivatives.
Zero coupon bonds (also called “zero coupon bonds”) are a type of financial instrument, which is a type of security that has no regular interest payments. There are also many types of zero-coupon securities, including equity securities, debt securities, and derivatives.
See lessZero coupon bond is also called zeroes. It is a type of bond that does not have any interest and pays the principal amount at maturity. There are various advantages of zero-coupon bonds. The most important one is that they are free from income tax.
Zero coupon bond is also called zeroes. It is a type of bond that does not have any interest and pays the principal amount at maturity. There are various advantages of zero-coupon bonds. The most important one is that they are free from income tax.
See lessOn the maturity date, the zero-coupon bond will be redeemed at its face value. The holder will get back Rs 10,000 after the bond matures. In India, there are three categories of bonds: government securities, corporate securities and debentures. If a person purchases a government security or a corporRead more
On the maturity date, the zero-coupon bond will be redeemed at its face value. The holder will get back Rs 10,000 after the bond matures. In India, there are three categories of bonds: government securities, corporate securities and debentures. If a person purchases a government security or a corporate security, he/she is entitled to a fixed interest rate that is paid on every coupon date. This is quite different from an Indian government bond or a municipal corporation bond which offers zero coupon interest in its initial years of issuance before paying interest on each coupon date.
See less