An investor would consider investing in a zero coupon bond because of the

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Zero coupon bonds offer the ability to lock in a multiplier of the initial investment, meaning that the investor can purchase the bond at a discount and receive the face value of the bond at maturity, resulting in a higher return. They are also known for having lower volatility compared to other types of bonds. Tax benefits of amortization are not applicable for zero coupon bonds as they do not pay interest, therefore they do not create taxable income.

An Investor Would Consider Investing in a Zero Coupon Bond