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Zero Coupon bond is a discounted bond upfront. A Rs.100 bond issued for 5 years at a discount of Rs.50.
This means, Rs.50 is the investment and Rs.10 every year wiil be the ineterst income. But the only thing is that all the payments will be made at the end of 5 years, i.e. on maturity.

2007-03-18 20:36:51 · answer #1 · answered by surez 3 · 0 0

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