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The Black Legend described:
Zero-coupon Bond
A bond that does not pay periodic interest, but is sold at a deep discount from its face value and redeemed at full value at maturity.
Rate of Return
The returns or setbacks realized from an investment over a certain time period, expressed as a percentage of the initial capital invested.
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, factoring in all interest payments made over time.
Zero-coupon Bond
A bond that does not pay interest during its life and is sold at a discount from the face value, which is paid to the holder at maturity.
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