Back to Finance Glossary | Previous PageA zero-coupon bond is a discount bond that makes no coupon payments.
For example, a zero-coupon bond might have a face value of $1,000, have a term of one year, carry no interest payments but will be issued at a discount price of $950.
In this case, a purchaser will earn money on the bond simply by holding it and receiving the face value at the end of the period rather than collecting interest payments over the life of the bond.
Latest Articles Related to Zero-coupon bond
Back to Finance Glossary | Previous Page
This web site is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any securities. The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable.