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Zero Coupon Bond

A zero-coupon bond is a type of bond that does not pay periodic interest to the bondholder. Instead, the bond is issued at a discount to its face value, and the bondholder receives the face value of the bond at maturity. The difference between the purchase price and the face value represents the return to the bondholder, which is the equivalent of the interest that would have been paid out in periodic coupons.

Zero-Cost Hedge (0 hedge) The concept of zero-cost hedging refers to risk management strategies in which a financial position is protected without an upfront payment using options or other financial instruments.