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Zero-Coupon Bond
A bond that is sold at a discount and does not pay interest but is redeemed at its full face value at maturity.
Purchase Price
The amount paid to buy an asset or security, which can influence the investment's potential return and tax implications.
Face Value
The nominal or dollar value printed on a security or bond, representing the amount the issuer promises to pay at maturity.
Zero-Coupon Bonds
Bonds that are sold at a discount and pay no regular interest payments but are redeemed at their face value at maturity.
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