Public Debt Market Glossary

Public Debt Market Glossary

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Z

Zero coupon bond 
A bond that does not have regular interest payments, but rather these are paid up in full at the time it is redeemed. They are usually issued at a discount, with interests to be accrued discounted from the acquisition price.
Zero-coupon security 

Fixed-income security issued at below par value, remuneration of which is paid in full at the time of its redemption in the form of a premium.