Together, these factors help determine the value of your bond investment and the degree to which it matches your financial objectives. Interest Rate Bonds pay interest that can be fixed, floating or payable at maturity. Typically, investors receive interest payments semiannually. But some sellers and buyers of debt securities prefer having an interest rate that is adjustable, and more closely tracks prevailing market rates.
Some bonds have no periodic interest payments.
Known as zero-coupon bonds, they are sold at a substantial discount from their face amount. If the bond is taxable, the interest is taxed as it accrues, even though it is not paid to the investor before maturity or redemption. Maturity A bond's maturity refers to the specific future date on which the investor's principal will be repaid. Bond maturities generally range from one day up to 30 years. In some cases, bonds have been issued for terms of up to 100 years.