Coupon on municipal bonds

2019-08-22 03:40

While most municipal bonds provide semiannual interest payments, zero coupon bonds, as their name suggests, have no coupon, or periodic interest payments. Instead, the investor receives one paymentat maturitythat is equal to the principal invested plus the interest earned, compounded semiannually, at a stated yield.A coupon is the annual interest rate paid on a bond, expressed as a percentage of the face value, also referred to as the coupon rate. coupon on municipal bonds

Zerocoupon municipal bonds are issued at an original issue discount, with the full value, including accrued interest, paid at maturity. Interest income may be reportable annually, even though no annual payments are made. Market prices of zerocoupon bonds tend to be more volatile than bonds that pay interest regularly.

David Lerner Associates offers various types of municipal bonds to invest in: Municipal bonds, TaxFree Municipal Bonds, Taxable Municipal Bonds, Zero Coupon Bonds, and Collateralized Mortgage Obligations (CMOs). MunicipalBonds. com takes a look at zero coupon muni bondscoupon on municipal bonds

Free Coupon on municipal bonds

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