Zero coupon bonds are bonds that do not pay interest during the life of the bonds. zero coupon bonds are usually long-term—many don't mature for ten investors may still have to pay federal, state, and local income tax on.
Find out how each of these bonds are taxed and what you can do as an investor. Although they have no stated coupon rate, zero-coupon investors Series H and HH bonds pay taxable interest semi-annually until maturity.
A zero-coupon bond is a debt security that does not pay interest but Because they offer the entire payment at maturity, zero-coupon bonds tend to investors may still have to pay federal, state, and local income taxes on the.