# Zero-Coupon Bond

*Markets & Instruments — Finicade finance glossary*

A bond that pays no interest along the way — you buy it below face value and it repays the full amount at maturity, with the gap being your return. Its price is simply the discounted face value.

**Also known as:** zero coupon

**Related terms:** [Bond](https://finicade.com/glossary/bond), [Discount Factor](https://finicade.com/glossary/discount-factor), [Present Value](https://finicade.com/glossary/present-value)

**Taught in:** Quant Quest — Interest Rate Instruments I

Source: https://finicade.com/glossary/zero-coupon-bond