Discount and calculated return
FINRA and the SEC explain the zero-coupon structure through the absence of intermediate interest payments and receipt of the specified amount at the end.[18](#source-cm-zero)[14](#source-cm-corporate) When bought at a discount, a zero coupon rate is compatible with a positive calculated return. But the discount alone is not an annual compound rate: price, amount and time are all required.
Risks before maturity
A promised payment does not confirm that it will be made. Before maturity, the market price can change, and the absence of coupons does not remove credit, inflation or liquidity risk. It only excludes reinvestment of intermediate coupons in the simple model. If the final amount depends on a condition or early-termination rights exist, they must be considered separately. The [zero-coupon cash-flow calculation](/guides/zero-coupon-bond-discount/) uses no real issues and does not import foreign taxation.