Deferred interest bond

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Deferred interest bond

A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond.

Deferred Interest Bond

A bond that pays no coupons until a certain point in the future. An example is a zero-coupon bond, which pays no interest at all, but the par value one receives at maturity provides the equivalent.