What are the characteristics of a zero-coupon bond, and why do investors purchase them when they provide nothing on a regular basis?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4Q: If you buy a callable bond and interest rates decline, will the value of your bond rise by as much...
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What are the characteristics of a zero-coupon bond, and why do investors purchase them when they provide nothing on a regular basis?

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