A bond that makes no periodic interest payments but instead is sold at a deep discount on its face value. The buyer of such a bond receives the rate of return earned on the gradual appreciation of the security, which is redeemed at face value on a specified maturity date.

A method the National Association of Insurance Commissioners (NAIC) uses to examine insurance companies. Teams are formed from the various state commissioners' offices and their findings are applicable to all states in which the various insurance companies operate.