Would You Buy This Bond?

Having trouble on a finance question
You have 4 bonds with a coupon rate of 0% that matures in 3 years and 12 months and they are being sold at 68 and 3/9. You believe that interest rates are going to go down fall in the future. Do you buy these bonds?
I would say no because even though you are buying the bonds at a steep discount, they’re coming with a 0% coupon rate. At maturity you will get the value the bond was worth at par without any extra interest. And if you feel interest rates are going to fall that means it won’t get better.
Am I right?

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One Response to “Would You Buy This Bond?”

  1. SumDude says:

    No.
    If interest rates fall, the bonds would rise in price (not be as steeply discounted); so BUY

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