A bond that pays no interest. The bond is initially offered at a discount to its redemption value.
Zero Coupon Bond
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Related Terms
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Bond vigilantes act as a market-driven check on reckless fiscal policies, making it harder for governments to ignore economic fundamentals.
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The discount rate is the interest rate charged by a central bank, such as the Federal Reserve, to commercial banks for borrowing funds on a short-term basis.
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U.S. Treasuries are debt securities issued by the United States Department of the Treasury to finance government spending and obligations
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The discount window is a tool that the central bank, like the Federal Reserve, uses to provide liquidity to the banking system.
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Yield refers to the income generated by an investment over a certain period of time,