Question: A wide array of bonds and other types of financial instruments can be purchased from parties seeking
money. A zero-coupon bond is one that is popular because of its ease. The face value of a zero-coupon bond is
paid to the investor after a specified period of time but no other cash payment is made. There is no stated cash interest. Money is received when the bond is issued and money is paid at the end of the term but no other payments
are ever made. Why does any investor choose to purchase a zero-coupon bond if no interest is paid?
Answer: No investor would buy a note or bond that did not pay interest. That makes no economic sense. Because
zero-coupon bonds are widely issued, some form of interest must be included. These bonds are sold at a discount
below face value with the difference serving as interest. If a bond is issued for $37,000 and the company
eventually repays the face value of $40,000, the additional $3,000 is interest on the debt. That is the charge paid
for the use of the money that was borrowed. The price reduction below face value can be so significant that zero-
coupon bonds are sometimes referred to as deep discount bonds.
To illustrate, assume that on January 1, Year One, a company offers a $20,000 two-year zero-coupon bond to the
public. A single payment of $20,000 will be made to the bondholder on December 31, Year Two. According to
the contract, no other cash is to be paid. An investor who wishes to make a 7 percent annual interest rate can mathematically compute the amount to pay to earn exactly that interest. The debtor must then decide whether to
accept this offer.
Why Work with Us
Top Quality and Well-Researched Papers
Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.
Professional and Experienced Academic Writers
For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.
Free Unlimited Revisions
Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.
Prompt Delivery and 100% Money-Back-Guarantee
All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.
Original & Confidential
Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.
24/7 Customer Support
Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.
Essays
It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.
Admissions
Admission Essays & Business Writing Help
A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.
Reviews
Editing Support
Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.
Reviews
Revision Support
If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.