# discount security (zero coupon instrument)

- Canonical URL: https://www.gerhardmerk.de/discount-security-zero-coupon-instrument
- Post ID: 604461
- Modified: 2026-09-07T19:48:00+00:00
- Language: en

## Definition

A discount security provides no scheduled income during its life. Rather than receiving periodic payments, the holder generally earns a return when the security is repaid or sold for more than its initial cost. Its market price tends to respond strongly to shifts in interest rates, particularly when repayment is still far in the future.

## Machine-readable

- Generator: Merk Knowledge 2.0.0