Are "zero-coupon bonds" a good educational plan investment?

Zero-coupon bonds are often recommended by financial advisors because they are sold at a substantial discount and, if held to maturity, pay off at face value. If your projections are correct, the funds will be there with these types of bonds. However, zero-coupon bonds are subject to interest rate risk if sold before maturity and also have little inflation protection. Another problem with zero-coupon bonds is that even though income or interest is not received until maturity, the owner must report the income each year. This means that he or she will have to pay the tax on the accrued interest each year from other resources.