PTIN Seal

Investments & Financial Planning

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Investments & Financial Planning
  4. What are Zero Coupon securities ?

What are Zero Coupon securities ?

CATS (Certificates of Accrual on Treasury Securities)are Issues from the U.S. Treasury sold at a deep discount from their face value. They are called Zero Coupon securities because they require no interest payments during their lifetime, but they return the full face value at maturity. They cannot be called away.

Need Professional Help?

If you need help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.