Zero coupon bond

(ZCB). Securities which pay no intermediate coupons, but only a redemption amount, so that the whole of the return to investors is represented by their capital gain from their investment date to the redemption of the bond at its final maturity. This may be beneficial for some taxpayers, especially high-income individuals.

See also

• Coupon bond
• Reinvestment risk
• Zero
• Zero coupon
• Zero coupon yield