The present value equation for an annual coupon bond is given by.

When I suggested zero coupon bonds, my brother asked what would happen if inflation was to rise sharply from current levels.

The securities have various interest rates and include zero coupon bonds.

For example, a future on a zero coupon bond will have a futures price lower than the forward price.

Decker said, 'But there are still plenty of coupon bonds on the secondary market.

At the same time avoid zero coupon bonds, he warned.

The financing also includes zero coupon bonds that pay no interest.

Now that rates have risen almost to 9 percent, zero coupon bonds are much more attractive investments than they were one year ago.

When a child is born, a lot of grandparents buy zero coupon bonds as gifts.

But its cash needs will increase in 1991 when interest on some outstanding zero coupon bonds must be paid, they said.