For instance, you may pay $700 to purchase a 20-year zero coupon bond with a $1,000 face value. At maturity, you receive the full $1,000 with no interim payments. Zero-coupon Treasuries have ...

By becoming a Strips, the $10,000 face value of the bond is separated and sold as a single zero-coupon bond. An investor might purchase this principal Strips at a price lower than $10,000 ...

The separated principal from the bond, known as the residue, becomes a zero-coupon bond that matures to face value. Even ...

zero-coupon bonds, short-term bonds and long-term bonds, we can shed light on just how much duration can affect its value. The easiest duration to calculate is that of a zero-coupon bond.

Suppose you have a choice of purchasing between a Rs 10,000 bond of XYZ company that pays a 5% coupon and matures in the next 90 days and a Rs 10,000 zero-coupon bond. The current price of the ...

Pricing for short- and long-dated European and American options to buy Euros vs. U.S. dollars at a strike price of 1.0500 for ...