Which type of bond yields no interest payments until maturity?

A zero-coupon bond is designed specifically to yield no interest payments until maturity. Instead of receiving periodic interest, investors buy these bonds at a discount to their face value and receive the full face value when the bond matures. This means that the return on investment comes from the difference between the purchase price and the amount received at maturity, rather than from regular interest payments.

In contrast, a coupon bond does provide regular interest payments, known as coupons, throughout its life. Callable bonds have provisions that allow the issuer to redeem them before maturity, often impacting their yield structure. Sovereign bonds, while they can be issued as zero-coupon bonds, generally refer to government-issued debt that may include regular interest payments, making them distinct from zero-coupon bonds.