As the name suggests, there is a Zero Coupon. 

• Coupon means interest

• Zero-coupon means no interest 

There is no interest rate applicable on the zero-coupon bond investment.

Does that mean there are no returns on these bonds?

• You get returns, but they are not in the form of interest rates

• Here, you invest in a discounted value of the bond and get the full actual amount on the maturity

For how long do you need to invest?

The tenure for zero-coupon bonds is between 10 years to 15 years.

Where can you find zero-coupon bonds to invest in?

Banks, governments and corporates issue zero-coupon bonds.

What are the interest rates offered by zero-coupon Bonds?

• There are no interest rates applicable on Zero-coupon bonds.
• You invest in these bonds at a discounted value and get fair-value money on maturity.
• Since you know the returns, you are going to get at the time of investing, these bonds are considered risk-free.

What is the minimum amount you can invest?

The minimum amount you can invest in these bonds is ₹100.