In parlance of bonds, coupon refers to the interest paid to the bond holder on a periodic basis till maturity. In Zero-coupon Bonds, the value of coupons is nil. Hence the bond holders do not receive any interest on such bonds. They are issued at a deep discount on the face value of the bonds. Hence, they are also known as deep-discount bonds.

On the maturity date, the holder receives the amount equivalent to the face value of the bonds.