Many securities carry some sort of income return, whether a coupon on a fixed income security or a dividend on a share.

However some securities offer a coupon or dividend of zero. Instead these securities offer future capital gains. As such, in the case of a zero coupon bond for example, they may be issued at a discount to their nominal (or “par”) value to be redeemed later at par. Some preference shares also come in the form of zeros.

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