ZERO COUPON BOND – An original issue discount bond on which no periodic interest payments are made but which is issued at a deep discount from par, accreting (at the rate represented by the offering yield at issuance) to its full value at maturity. Compare: CAPITAL APPRECIATION BOND; CURRENT INTEREST PAYING BOND.  See:  COMPOUND ACCRETED VALUE; ORIGINAL ISSUE DISCOUNT; ORIGINAL ISSUE DISCOUNT BOND.