A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a

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A discount bond is sold at a price lower than its face value and pays the face value at maturity. It does not have periodic interest payments like a coupon bond or fixed payments like a fixed-payment loan. A simple loan involves borrowing a principal amount with interest payments made over a period of time.

A Credit Market Instrument That Pays the Owner the Face