Zero-coupon bonds While most municipal bonds pay periodic interest, a zero-coupon bond makes a single payment at maturity. You buy zeros at a discount, meaning the purchase price is lower than the bond's face value.
Municipal Bond Basics - Raymond James
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The coupon rate is the annual income an investor can expect to receive while holding a particular bond. It is fixed when the bond is issued and is calculated by dividing the sum of the annual coupon payments by the par value. At the time it is purchased, a bond's yield to maturity and its coupon rate are the same.
Coupon Rate Definition - Investopedia
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Municipal Bond Purchased at Original Issue Discounts The IRS considers this an issuer-based discount as opposed to a market-based discount.
Buying Municipal Bonds - David Lerner Associates
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A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.
4 Basic Things to Know About Bonds - Investopedia
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