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  • Zero-coupon bond

    The issue of a zero-coupon bond commits the issuer to pay a nominal value at a certain date in the future. On the primary and secondary market it is sold for a price lower than its nominal price. The difference between the nominal value and the sales price is the so-called discount. A zero-coupon bond does not have coupon repayments between its issue and the repayments of the nominal value.

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