For Zero Coupon Bonds we have terms and definitions in 2 topics. The topics are Accounting and Real Estate.

Zero Coupon Bonds (Accounting)

are bonds priced at a large discount from face value. The bonds mature at full face value so the difference between the original issue price and the face value represents interest income. The issuer of the zero coupon bond saves on cash flow since the interest isn't paid out until the end of the bond holding period.

Zero Coupon Bonds (Real Estate)

A single-payment bond that grows to its face value over a prescribed time period at a specific interest rate. All compound interest is tax-deferred until the bond is cashed.

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