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What are the advantages & disadvantages of a zero coupon bond? ABC issued 20 yr bonds you bought 2 years ago. Now they're offing junk

What are the advantages & disadvantages of a zero coupon bond?

ABC issued 20 yr bonds you bought 2 years ago. Now they're offing junk bonds and using the proceeds to repurchase stock. Does any of this effect your bonds value?

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Zero coupon bonds also known as discount bonds are fixedincome securities that do not pay periodic interest coupon payments like traditional bonds Instead they are issued at a discount to their face v... blur-text-image

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