What are the characteristics that distinguish a zero coupon bond?\ Zero coupon bonds are issued when a company is financially very strong to make cash interest payments.\ Zero coupon bonds do not pay interest; cash is only received at the maturity date by the bondholder; and an investor would not likely pay face value for the bond.\ Zero coupon bonds do not have a contractual interest set in the bond certificate; it is determined by the market rate.\ Zero coupon bonds are not issued in the US.

What are the characteristics that distinguish a zero coupon bond? Zero coupon bonds are issued when a company is financially very strong to make cash interest payments. Zero coupon bonds do not pay interest; cash is only received at the maturity date by the bondholder; and an investor would not likely pay face value for the bond. Zero coupon bonds do not have a contractual interest set in the bond certificate; it is determined by the market rate. Zero coupon bonds are not issued in the US