Investopedia Video: Zero-Coupon Bond

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
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[@BigDickEnergy777]

It's really good that these videos come with examples, that way we can more easily understand things.

[@eltajbabazade1189]

Omg I read same thing from textbook and didn’t understood. Thank you very much

[@will3821]

Wow what am I listening to in the background

Awesome explanation!

[@puneet8488]

Awesome explanation

[@a-l1969]

Sounds like it's almost time

[@trifio5242]

SERIOUSL - WHERE DO YOU GET YOUR MUSIC!!!

[@MuhammadRafy]

KZbin has stock music

[@Nickuncle]

Well I must say I didn't ever realize that you pay income tax on the interest that accrues on the bond....Seems very strange.

[@DLBcovers]

ikr

[@AminaPhilosophy]

Accretion

[@denio93]

Why would the investor have to pay tax on interst that has been stripped. Sounds like we are paying someone else's taxes.

[@And-ft2zw]

You are always chained on tax. You can't get away with it. Unless your on the private sector.

[@anushanaidu1064]

The music is really annoying.... !!!!!!!!

[@sangwookim5551]

At 1:26 I don't quite understand the biggest drawback, is he saying that while Alison has to wait without receiving payments and paying income taxes, other companies that give out bonds attached with coupons are reinvesting their interest to get bigger interest? So she's is losing out? Is that what the speaker means?

[@inderpreet1987]

As I understood from the video, Your conclusion is correct. The issuer of Strip bond (Zero coupon bond) keeps the interest payments and can invest as it deem fit.

[@ryantpasaribu3119]

isnt it better to buy gold?

[@DLBcovers]

no

[@inderpreet1987]

I think it depends on investor's investment goal (return expectations and time horizon). If I want guaranteed return, I will go with fixed income security (Like bonds, debentures etc). Your inputs are welcome.