Getting something for nothing

There are rewards for owning zero-coupon bonds

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Years to Maturity

Maturity
Value

Yield 30 25 20 15 10 5 4%

$1,540

$1,880

$2,280

$2,780

$2,380

$4,110

$5,000

5%

1,160

1,480

1,880

2,400

3,070

3,920

5,000

6%

870

1,170

1,556

2,090

2,790

3,740

5,000

7%

660

920

1,290

1,810

2,540

3,570

5,000

8%

500

1,730

1,070

1,580

2,320

3,400

5,000

Numbers are approximations for example purposes only.Source: www.schwab.com
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