Issuers of 0 coupon securities include:
U.S Government Treasury Bills U.S Government Agencies Municipalities (Municipal Bonds) Corporate Bonds
Fiixed income investments and bonds that do not have a coupons or nominal yields have little or no reinvestment risk. The term reinvestment risk refers to an investor having to deposit or invest their interest payments received from other securities. When interest rates are low, this risk can be amplified. However with 0 coupon bonds - that issue is minimized by the fact that no payments are received until maturity. Since Zeros are usually longer term - this risk is even less realized.
Learn more about: Zero Coupon Bonds with helpful links and trading companies
