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Zero-coupon rate - Financial definition

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Concise definition of the term zero-coupon rate

An interest rate in which all of the interest is paid at the end of a period, e.g. for a two-year period the interest would be paid at the end of year two (there would be no interim coupons or cash flows).

Comprehensive definition of the term zero-coupon rate

Alternatively, could be the rate on a zero-coupon bond that pays no coupons but is sold at a deep discount to par.

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