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Zero Coupon Bonds Risky for Investors

Investors are rushing into the uncertain and most volatile corner of the U.S. government bond market in search of bigger returns. Zero-coupon Treasury bonds, mature in more than 25 years have handed investors a return of 5.79% year to date, according to data from Barclays PLC, while not offering a steady stream of income. With expected delay in rising interest rates, fund managers are shrugging off the risks of these government bonds as well. Click here for more information.

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