Understanding Zero-Coupon Bonds

In the bond market, various types of bonds serve different investment purposes and come with distinct characteristics. These bonds can be categorized based on their issuer, coupon payment structure, and other features. One such category is the 'zero-coupon bond', which is known for not paying periodic interest payments. Instead, it is sold at a discount to its face value and matures at par value.

Which of the following best describes a zero-coupon bond?