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Glossary of Investment Terms

 

 

Z

 

Zero Coupon Bond

 

A bond that pays no periodic interest but is priced, at issue, at a discount from its redemption price. U.S. savings bonds are an example of zero coupon bonds.

 

 

 

Zero Coupon CD

 

Certificate of Deposit sold at a discount to face value, which pays the entire face value at maturity.

 

 

 

 

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