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Zero Coupon Bonds's Journal Entries



Zero coupon bonds are the famous type of bonds in which the company will gives only face value without paying any extra discount. Investor gets earning buy getting the zero coupon bonds at discount. This discount will be the income of investor and second side, company has to show it as interest which not in cash but it is the part of face value of zero coupon bonds. I have taught its journal entries in above video.

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