Zero-Coupon Bond
Zero-Coupon Bond is a type of bond that does not pay any interests, but only generates profit at maturity when it is redeemed.
Zero-Coupon Bond is sold at heavy discount, and because of their late payment price of these bonds fluctuates a lot.
Zero-Coupon Bonds are also known as "split coupon bonds", "accrual bonds" or "non-interest-bearing note."
| Related Terms: Zero-Coupon Convertible |