A zero coupon bond pays no periodic interest. It is issued at a discount to its face value, or redeemed at a premium, and the difference is the investor's return.
If a bond with a face value of ₹1,000 is issued at ₹750 and repaid at ₹1,000 in four years, the return of ₹250 works out to about 7.5% a year. Bonds issued at a large discount are also called deep discount bonds.
Because nothing is paid until maturity, the price of a zero coupon bond moves more with interest rates than a coupon bond of the same maturity: its duration equals its maturity. A cumulative NCD works the same way for the investor, though it is issued at face value.
Zero coupon bond: issuers on Bond Interpretation
190 outstanding bonds of this kind from 68 issuers are on Bond Interpretation. Issuers with the most:
- ICL Fincorp Limited 19 bonds
- Sammaan Capital Limited 17 bonds
- Edel Finance Company Limited 14 bonds
- ECap Equities Limited 11 bonds
- Adani Enterprises Limited 8 bonds
- IIFL Finance Limited 8 bonds
- Cholamandalam Investment and Finance Company Limited 6 bonds
- IIFL Home Finance Limited 6 bonds
- Kolte-Patil Developers Ltd 5 bonds
- Power Finance Corporation Limited 5 bonds
- 360 ONE Prime Limited 4 bonds
- Aditya Birla Capital Limited 4 bonds
- Claypond Capital Partners Private Limited 4 bonds
- Marwadi Chandarana Intermediaries Brokers Private Limited 4 bonds
- Assetz Industrial Parks Private Limited 3 bonds
Data as of 6 Nov 2026 (snapshot 20261106-2030). Methodology and sources
Related
Related terms: Cumulative NCD · Duration · Yield to maturity (YTM) · Face value
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
