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Glossary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z all

Z Score
Z Score indicates how many standard deviations an element is from the mean.

Zero Coupon Bond
A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the bond (which can be federally tax-exempt for municipal bonds) comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of otherwise equivalent bonds that pay interest periodically.