on secondary bond markets. Short-term zero coupon bonds generally have maturities of less than one year and are called bills. The US Treasury bill market is the most active and liquid debt market in the world.

Strip bonds

Zero coupon bonds have a duration equal to the bond's time to maturity, which makes them sensitive to any changes in the interest rates. Investment banks or dealers may separate coupons from the principal of coupon bonds, which

1.Previous
3.Next