A bond that pays no interest. The bond is initially offered at a discount to its redemption value.
Zero Coupon Bond
Related Terms
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U.S. Treasuries are debt securities issued by the United States Department of the Treasury to finance government spending and obligations
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The discount rate is the interest rate charged by a central bank, such as the Federal Reserve, to commercial banks for borrowing funds on a short-term basis.
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The discount window is a tool that the central bank, like the Federal Reserve, uses to provide liquidity to the banking system.
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Yield refers to the income generated by an investment over a certain period of time,
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A mortgage-backed security (MBS) provides investors with a monthly pro-rata distribution of any principal and interest payments made by homeowners. Types of MBS Pass-throughs In a pass-through MBS,...