Answer: A standard bond offers interest payments, known as "coupons" every six months. So a bond quoted as having an 8% coupon will give you a 4% payment or $400 per $10,000 face value, twice a year. A zero coupon bond offers no payment until maturity. A zero offering a 5% per year return for 14 years will sell at approximately half its face value, or $5000 for a $10,000 payment 14 years hence.