Bond Basics: Zero-Coupon Bonds

These investments are attractive only to a select few. Find out if they're right for you.

Calculator with bond written out in the display and a pair of glasses
(Image credit: Getty Images)

Bonds help add diversity to your portfolio and control risk. But they can be complicated. Zero-coupon bonds are cheaper to invest in than conventional bonds but have some unique characteristics that set them apart. We can help you understand the basics of zero-coupon bonds and make them work for you.

What is a bond coupon? 

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation.