A bond that pays no annual interest but is sold at a discount below its par value is called a:

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A zero coupon bond is a type of bond that is sold at a discount below its par value and pays no annual interest. Instead, the bond is sold at a discounted price and the investor receives the full face value of the bond at maturity. This type of bond is also referred to as a discount bond or deep discount bond.

A Bond That Pays No Annual Interest but Is Sold