{"id":340336,"date":"2025-06-14T17:36:56","date_gmt":"2025-06-14T12:06:56","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=340336"},"modified":"2025-06-15T19:37:16","modified_gmt":"2025-06-15T14:07:16","slug":"zero-coupon-bond","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/zero-coupon-bond\/","title":{"rendered":"Zero-Coupon Bond"},"content":{"rendered":"<p><strong>News:<\/strong> State-owned PFC has withdrawn its planned issuance of zero-coupon bonds for the second time in over a month, as investors demanded higher yields. <strong>Zero-Coupon Bond.<\/strong><\/p>\n<h2>About Zero-Coupon Bond<\/h2>\n<figure id=\"attachment_340348\" aria-describedby=\"caption-attachment-340348\" style=\"width: 405px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-340348\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard.png?resize=405%2C254&#038;ssl=1\" alt=\"\" width=\"405\" height=\"254\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard.png?resize=300%2C188&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard.png?resize=1024%2C642&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard.png?resize=768%2C482&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard.png?w=1095&amp;ssl=1 1095w\" sizes=\"auto, (max-width: 405px) 100vw, 405px\" \/><figcaption id=\"caption-attachment-340348\" class=\"wp-caption-text\">Source &#8211; Business Standard<\/figcaption><\/figure>\n<ul>\n<li>A zero-coupon bond is a <strong>type of debt instrument<\/strong> that <strong>does not pay periodic interest<\/strong>.<\/li>\n<li>It is also known as the <strong>discount bond<\/strong>.<\/li>\n<li>Instead, it is <strong>issued at a deep discount<\/strong> and <strong>redeemed at its full face value<\/strong> upon maturity, with the <strong>profit<\/strong> being the <strong>difference<\/strong> between the purchase price and the maturity value.<\/li>\n<li><strong>Types:<\/strong> There are <strong>two types<\/strong> of Zero Coupon Bonds, which are <strong>corporate Zero Coupon bonds<\/strong> and <strong>Government Zero Coupon bonds<\/strong>.<\/li>\n<li><strong>Suitable tenure for Zero Bond Coupon<\/strong>\n<ul>\n<li>The <strong>time and the maturity value<\/strong> of Zero Coupon bonds share a <strong>negative correlation<\/strong>.<\/li>\n<li>The <strong>longer<\/strong> until the maturity date, the <strong>less the investors have to pay<\/strong> for it.<\/li>\n<li>Therefore, the Zero Coupon bonds generally come with a <strong>time horizon of 10 to 15 years<\/strong>.<\/li>\n<li>On the other hand, these <strong>bonds with a time period of less than one<\/strong> can be a short-term investment option.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Taxability <\/strong>\n<ul>\n<li>Taxability of zero-coupon bonds <strong>depends on the issuer organisation<\/strong>.<\/li>\n<li>Maturity and premature withdrawal of certain types of zero-coupon bonds are <strong>subject to tax under \u201cCapital gain\u201d. <\/strong><\/li>\n<li>Otherwise, only the interest part is taxable on its maturity under <strong>\u201cIncome From Other Sources\u201d.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: State-owned PFC has withdrawn its planned issuance of zero-coupon bonds for the second time in over a month, as investors demanded higher yields. Zero-Coupon Bond. About Zero-Coupon Bond A zero-coupon bond is a type of debt instrument that does not pay periodic interest. It is also known as the discount bond. Instead, it is&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/zero-coupon-bond\/\">Continue reading <span class=\"screen-reader-text\">Zero-Coupon Bond<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":340477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-340336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Business-Standard-300x188-1.png?fit=300%2C188&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/340336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=340336"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/340336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/340477"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=340336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=340336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=340336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}