Trading TermsActuals Optimization Forward exchange contract (FEC) Black-Scholes Option Pricing Model Stop-Running Countertrade
Zero-Coupon Government Bonds
As a finance professional, you may come across government bonds that are sold at a significant discount and do not provide any cash dividend, unlike traditional bonds. These are known as zero-coupon bonds. They are issued by governments to raise funds and have a fixed maturity date. Upon maturity, the investor receives the full face value of the bond. This unique type of bond offers a way to invest in government debt at a discounted price.
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