I have a conceptual question regarding zero-coupon bonds. The issuer sells the bond at a deep discount to the face value. The discount becomes the capital gains (profit) for the bond holder. What is in it for the bond issuer? Why would the the issuer take in a loss by selling a bond at a discount?
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.