Zero coupon canada government bonds
"If the goal is to have a specific amount of money in a specific number of years from now, short-term debt is very risky and carries significant interest rate and re-investment risk, and a zero-coupon bond is a great solution, says Michael Tanney, co-founder of New York City-based Wanderlust Wealth Management. Zero-coupon bonds are bonds that do not make any interest payments (which investment professionals often refer to as the “coupon”) until maturity. This means that if you buy today a zero-coupon bond that matures in 20 years, you won’t put a single penny worth of interest income in your pocket for two decades. Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount a bond will be worth when it "matures" or comes due.