Zero-Coupon Certificate Of Deposit (CD) - Definition

A certificate of deposit that pays no periodic interest and that is sold at a discount from Face Value (that is, Maturity value). A zero-coupon CD is essentially the same as any other CD in which the investor leaves interest to compound.

These certificates of deposit are issued at a substantial discount from the Amount-714'>Face amount of the CD. Typically the maturity terms are much longer, 15 to 20 years, which results in the discounted price. Zero Coupon CDs do not pay interest until the maturity date.



Terms near "Zero-Coupon Certificate Of Deposit (CD)"

Zero-Coupon Convertible
Zero-Coupon Mortgage
Zero-Floor Limit
Zero-Investment Portfolio
Zero-One Integer Programming
Zero-Rated Goods
Zero-Sum Game
Zero-Volatility Spread (Z-Spread)
Zeta Model
Zig Zag Indicator
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