Deep discount bonds and zero coupon bondsForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Deep discount bonds and zero coupon bondsThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts January 27, 2017 at 8:16 pm #369984 CandyMemberTopics: 135Replies: 79☆☆☆Mr Moffat,I have watched the lecture but am still unsure about the difference between the 2, can you please explain?Is it just that deep d.b receive very low interest whereas zero c.b do not receive any until redeemed?Thank you January 28, 2017 at 7:38 am #370015 John MoffatKeymasterTopics: 57Replies: 54805☆☆☆☆☆Exactly, deep discount bonds have a very low coupon rate, and zero coupon bonds pay no interest at all.Instead, there is a very large premium on redemption.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In