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t. e. A zero-coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. [1] Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par (or face) value.
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The sum of 0 numbers (the empty sum) is 0, and the product of 0 numbers (the empty product) is 1. The factorial 0! evaluates to 1, as a special case of the empty product. Other uses in mathematics The empty set has zero elements. The role of 0 as the smallest counting number can be generalized or extended in various ways.
In finance, a coupon is the interest payment received by a bondholder from the date of issuance until the date of maturity of a bond . Coupons are normally described in terms of the "coupon rate", which is calculated by adding the sum of coupons paid per year and dividing it by the bond's face value. For example, if a bond has a face value of ...