It is a treasury instrument, which is sold in denominations of $1,000.
But it does not earn interest I wonder how it makes money?
2006-10-04 15:13:16 · 3 answers · asked by capri1480 1 in Business & Finance ➔ Investing
Sounds like your talking about a Zero Coupon bond. The "C" probably stands of coupon and "I" for interest.
You're correct, a Zero pays no interest. The way you make money off of a Zero is that the issuer sells the Zero at a deep discount and pays face value at maturity. For example a $1,000 Zero will sell for say $400 and at maturity will pay you back the face value of $1,000.
2006-10-05 06:50:19 · answer #1 · answered by 4XTrader 5 · 0⤊ 0⤋
http://www.investopedia.com/terms/z/zero-couponbond.asp
Sounds like that is what you have. You will receive money only when the bond matures - you do not receive any interest on the bond.
You may also have I-bonds
http://www.savingsbonds.gov/indiv/research/indepth/ibonds/res_ibonds.htm
2006-10-04 22:21:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
zero percent means zero,I cant read anything else into it.
2006-10-04 22:17:10 · answer #3 · answered by frank m 5 · 0⤊ 1⤋