ZERO COUPON SECURITIES

Zero coupons offer to make you a deal: give up the interest payments you would get from owning other kinds of debt instruments, and get a hefty guaranteed lump sum at the end -- as long as the issuer does not default! This tutorial will introduce you to the basics of zero coupon securities:

What Are Zero Coupons? Basic Types of Zero Coupon Securities Strategic Considerations "Zeros" Are a Unique Twist on Bonds

So, what is a zero coupon, anyway?