Interest accrues on a zero coupon bond but not on a term bond.

Name: Interest accrues on a zero coupon bond but not on a term bond.
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Interest does not visibly accrue on a zero coupon bond because it is sold at a deep discount and does not pay periodic interest; the bondholder receives the face value at maturity. Both zero coupon bonds and term bonds can accrue interest, but the mechanism differs.

Interest Accrues on a Zero Coupon Bond but Not on a Term