A bond that makes no periodic interest payments, but sells at a deep discount from its face value. At the maturity date, the investor will receive the face value of the bond, plus the interest that ha [..]

A bond that pays no interest but is priced, at issue, at a discount from its redemption price. Return to top.

A bond that pays no coupon but is issued at a deep discount to face value. The difference between the issue and redemption prices creates a capital gain that boosts the effective yield close to market levels. As it does not pay a coupon investors do not run the risk of reinvesting interest paid at a lower rate if interest rates fall during the life [..]

Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay i [..]

A type of bond that pays no interest but is issued at a substantial discount to face value. The yield is the capital gain realised by...

A bond that sells at a huge discount and pays no interest.

A bond that pays no annual interest but is sold at a discount below par, thus providing compensation to investors in the form of capital appreciation.

A bond that pays no periodic interest, but returns a given amount of principal at a stated maturity date. Zero coupon bonds are sold at a discount to the maturity amount to provide the holder wi [..]

A bond that makes no periodic interest payments, but sells at a deep discount from its face value. At the maturity date, the investor will receive the face value of the bond, plus the interest that ha [..]

A zero-coupon bond is a bond that generates no periodic interest payments and is issued at a discount from face value. All return is realized at maturity. They are also known as accrual bonds. Because [..]

A bond that is originally issued at a deep discount from its par or face amount and which bears no current interest. The bond is bought at a discount price which implies a stated rate of return calculated on the basis of the bond being payable at par at maturity. (see "Capital Appreciation Bond").

A bond sold at a discounted rate.

A bond that makes no periodic interest payments, but sells at a deep discount from its face value. At the maturity date, the investor will receive the face value of the bond, plus the interest that has accrued over a fixed term.

A bond that makes no periodic interest payments, but sells at a deep discount from its face value. At the maturity date, the investor receives the face value of the bond plus the interest that has acc [..]

A bond that does not pay interest and matures at face value. It provides an investment return normally by being bought at a discounted price.

A bond that pays no interest but is priced, at issue, at a discount from its redemption price.

With a Zero Coupon Bond, the holder of the bond gets a lump sum upon maturity instead of periodic payments of interest during the lifetime of the bond. When the bond is issued, it costs significantly [..]

A bond that makes no periodic interest payments but instead is sold at a deep discount from its face value. The buyer receives a rate of return by the gradual appreciation. It is then redeemed at face value on a specified maturity date.

A bond issued at a discount (i.e below par value), earning no interest but redeemable at its par value, thus providing a guaranteed capital gain.

A bond with no coupon that is sold at a deep discount from par value.

Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay i [..]

A bond that pays no interest over its life. Long dated zero coupon bonds therefore trade at prices well below their eventual redemption price of par.