Timeline for Can zero-coupon bonds go down in price?
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
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| May 19, 2012 at 0:01 | vote | accept | Geo | ||
| Sep 9, 2012 at 5:02 | |||||
| May 16, 2012 at 11:33 | comment | added | Chris W. Rea | @MichaelKjörling Yes, that ought to be in the answer too. Thanks. | |
| May 16, 2012 at 11:32 | history | edited | Chris W. Rea | CC BY-SA 3.0 |
added 39 characters in body
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| May 16, 2012 at 7:46 | comment | added | user | The bond is guaranteed to be worth a certain amount at maturity - this is valid ONLY if the issuer doesn't default on the bond. As has been shown time and time again (most recently, I believe, with Greece), not even sovereign bonds are completely free of risk. | |
| May 15, 2012 at 23:45 | comment | added | Chris W. Rea | No, it should always have a price greater than $0 as long as the issuer hasn't gone bankrupt. What my answer says is that you can't count on it staying above $18. In the long run, as maturity approaches, the bond will tend to increase in price (towards the maturity price). In the short run, you can suffer capital loss. | |
| May 15, 2012 at 23:44 | comment | added | Geo | if I understand correctly a bond that cost 18 dollars could come to cost less than zero before maturity? is that appreciation correct? | |
| May 15, 2012 at 23:17 | history | answered | Chris W. Rea | CC BY-SA 3.0 |