deferred interest bond

deferred interest bond definition - finance
A bond that pays interest at maturity, or at a later date. A typical bond pays interest regularly, often twice a year. A zero-coupon bond is a type of deferred interest bond that pays no interest until maturity, at which point all the interest due and the face value of the bond is paid. Zero-coupon bonds are sold at a deep discount.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.