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