Zero-coupon bonds or zero-bonds are so named because they pay no interest. These bonds are issued at, and trade at, a discount to their maturity value. The investment return is therefore in the form of capital gain as opposed to income. See 'Bond'.
Zero-coupon bonds or zero-bonds are so named because they pay no interest. These bonds are issued at, and trade at, a discount to their maturity value. The investment return is therefore in the form of capital gain as opposed to income. See 'Bond'.
