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Zero Coupon Bonds Defined With Examples Finance Courses, Investing Programs

by admin | Apr 20, 2021 | Recharge

The difference between $20,000 and $6,855 (or $13,145) represents the interest that compounds mechanically until the bond matures. A single fee of $20,000 might be made to the bondholder on December 31, Year Two. An investor who needs to make a 7 percent annual rate...

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