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When should I buy and sell a zero-coupon bond?

zero coupon

zero coupon

New York - Zero-coupon bonds are bonds that do not pay any interest. Instead, you buy them at a discount to their eventual maturity value. The difference between the discounted price and the maturity value is equal to the interest that you will earn if you hold the bond to maturity.

Zero-coupon bonds are extremely volatile; however, investors should consider owning them if they have the ability to hold them until maturity. They are ideal for college savings and for retirement planning.

If you're looking for help managing your bond investments, consider working with a FEE-ONLY financial adviser from the TheAdviser.com. Our network of FEE-ONLY advisers can offer unbiased advice, personalized guidance and help you make informed decisions about your bond investments. Ask us any question or obtain a free consultation at TheAdviser.com.  Alternatively,  visit 1800ADVISER.COM to browse biographies of individual FEE-ONLY advisers and choose one or more to connect with. 

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