Zero-Coupon Bond
InvestingA bond sold at a discount to face value that pays no periodic interest, returning the full face value at maturity.
Example
Example: Consider an investor building a $100,000 portfolio. Zero-Coupon Bond — a bond sold at a discount to face value that pays no periodic interest, returning the — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.