Instead of getting interest payments, with a zero you buy the bond at a discount from the face value of the bond, and are paid the face amount when the bond matures. For example, you might pay $3,500 to purchase a 20-year zero-coupon bond with a face value of $10,000.
The One-Minute Guide to Zero Coupon Bonds | FINRA.org
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A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.
Zero-Coupon Bond - Investopedia
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Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond "matures" or comes due.
Zero Coupon Bond | Investor.gov
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Deferred interest bonds pay their accrued interest as a lump-sum amount at a later date rather than as periodic coupons. Zero-coupon bonds and toggles notes are two types of deferred interest bonds.
Deferred Interest Bond Definition - Investopedia
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