TITLE

RISKS AND REWARDS OF ZERO-COUPON BONDS FOR AN IRA

AUTHOR(S)
Vruwink, David R.
PUB. DATE
September 1985
SOURCE
FE: The Magazine for Financial Executives;Sep1985, Vol. 1 Issue 9, p53
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article presents information on risks and rewards of zero-coupon bonds for an individual retirement account (IRA). Since mid-1982, zero-coupon bonds backed by the U.S. Treasury have been highly recommended by stockbrokers and financial advisors as an investment for IRAs, Keoghs, and custodial accounts to fund children's education. As a result, the popularity of zeros has increased each year. Brokers are successful in selling zeros to investors for two main reasons. The first is their "bargain" price and the second reason is the fact that, an average investor will further justify purchasing zeros because he or she may focus only on the cash flows in computing the rate of return.
ACCESSION #
15090534

 

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