What are zero-coupon municipal bonds?

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Municipal bonds can be a low-risk investment option for investors, with the option of receiving periodic interest payments or waiting until the bond matures to receive all interest at once. Coupon municipal bonds differ from other municipal bonds as they do not provide periodic interest payments. The amount of interest for coupon municipal bonds is known in advance, and the investor receives all interest at maturity.

The municipal bonos de cupón cero are bonos that do not provide periodical interest payments. The mayoría de los otros bonos municipales will provide payrolls of interests every six months. Sin embargo, los bonos de cupón cero no pagan nada sobre la inversión hasta el vencimiento.

Municipal bonds are a reversal option that allows the reversal to reverse in a municipal, state or federal government. The reverser buys a bond that will hold the vencimiento in a specific moment many years in the future. During the vencimiento period, the government could use the money for projects such as the construction of schools or the repair of carreteras, or could use the funds for operational gastos. Los bonos municipales suelen tarde 10 años o más en madurar.

Municipal bonos will usually be attractive to reversers for various reasons. First, when buying municipal bonds from a local government, the investor could see the impact of the best results of the inversion if he lives in the community from which the bond was bought. En segundo lugar, los bonos municipales frecuencia una pequeña inversión inicial. For example, a bond with a nominal value of $10,000 US dollars (USD) could be bought for only $3,000-$4,000 USD at the time of sale. Por supuesto, the interest fee at the time of purchase will affect the price.

Tercero, los bonos municipales are generally an inversion of bajo riesgo. Although the interest in performance may not be as high as in other inversions, the success is also less because a rare government does not incumple with its deudas. Finally, the inputs for interests generated by a municipal voucher are not paid.

The cupon municipal bonds differ from other municipal bonds in the form in which the investor’s interests are paid. With the mayoría de los bonos municipales, the interests are calculated semi-annually or annually and are paid to the inverser, while a tenedor de bonos municipales de cupón cero no recibe nada sobre la inversión hasta que el bono llegue al vencimiento.

La cantidad de interés que recibiran los inversores subre los bonos municipales de cupón cero siempre semper conoce de antemano. What separates the basic municipal bonos from the municipal bonos de cupón cero is when the interests are paid. The holder of a $10,000 USD bond who paid $3,000 USD for the bond will always receive $7,000 USD in interest. If the bond is a basic municipal bond, it will be interesting to pay it in half-yearly or annual payments during the life of the bond, but if the bond is a cupon municipal bond, it will receive all of this interest at twenty.

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