What are the advantages and risks of investing in a deeply discounted bond that pays no coupon interest in the world of cryptocurrencies?

3 answers

• Andrey OrekhovJun 04, 2025 · 6 months ago
  Investing in a deeply discounted bond that pays no coupon interest in the world of cryptocurrencies can have several advantages. Firstly, these bonds are often sold at a significant discount to their face value, which means investors can potentially earn a higher return if the bond is eventually redeemed at its full value. Additionally, since these bonds do not pay any coupon interest, investors do not have to worry about interest rate fluctuations affecting their investment. However, there are also risks involved. The issuer of the bond may default on their payment obligations, leading to a loss of investment. Furthermore, the lack of coupon interest means that investors will not receive any regular income from the bond, which may not be suitable for those seeking a steady stream of cash flow from their investments.
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• Bech RitterFeb 21, 2025 · 9 months ago
  Investing in deeply discounted bonds without coupon interest in the world of cryptocurrencies can be a risky proposition. While the potential for high returns exists if the bond is redeemed at its full value, there is also a significant risk of losing the entire investment if the issuer defaults. Additionally, the lack of coupon interest means that investors will not receive any regular income from the bond, which may not be ideal for those looking for a steady cash flow. It is important for investors to carefully assess the creditworthiness of the issuer and consider their risk tolerance before investing in such bonds.
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• Rebened CHENJan 10, 2021 · 5 years ago
  Investing in deeply discounted bonds without coupon interest in the world of cryptocurrencies can be a lucrative opportunity for investors. These bonds are often sold at a steep discount, providing the potential for significant capital appreciation if the bond is eventually redeemed at its full value. However, it is crucial to consider the risks involved. The lack of coupon interest means that investors will not receive any regular income, which may not be suitable for those seeking consistent cash flow. Additionally, there is a risk of default by the issuer, which could result in a loss of investment. Therefore, it is important to conduct thorough research and due diligence before investing in such bonds.
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