A zero-coupon/deep discount bond is a debt security with no coupon (zero-coupon) or substantially lower coupon than current interest rates. The bonds are issued at a discount to their nominal value, with the discount reflecting the prevailing market interest rate. In the case of a zero-coupon bond, investors receive at maturity the difference between the purchase price and the nominal value of the bond (so called "uplift"). The longer the maturity of the bond, the greater the discount against par value.