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From: gordon@cae780.UUCP (Brian Gordon)
Newsgroups: net.invest
Subject: Re: zero-coupon bonds
Message-ID: <1939@cae780.UUCP>
Date: Sun, 9-Mar-86 19:08:56 EST
Article-I.D.: cae780.1939
Posted: Sun Mar  9 19:08:56 1986
Date-Received: Wed, 12-Mar-86 21:57:21 EST
References: <150@daisy.UUCP> <9725@ucla-cs.ARPA>
Reply-To: gordon@cae780.UUCP (Brian Gordon)
Distribution: net
Organization: Tektronix Inc. (CAE Systems Division), Santa Clara, CA
Lines: 8

In article <9725@ucla-cs.ARPA> ekrell@ucla-cs.UUCP writes:
>one problem with zero coupon bonds (besides them being more volatile to
>interest rate changes than most other bonds) is that, as I understand it,
>you pay taxes for the interest the bond yields even though you don't get
>a penny of that money until maturity. Could be a bad deal.

Which is, of course, why they are most often recommended for IRAs, which are
all tax-deferred anyway ...