Zero-Coupon Bonds are a type of bond that does not make periodic coupon payments like traditional bonds. Instead, they are sold at a price lower than their face value, and the investor receives the face value upon maturity. This means that the investor's return is the difference between the purchase price and the amount received at maturity. For example, a zero-coupon bond with a face value of $1,000 might be sold for $600, and at maturity, the investor will receive the full $1,000, thus earning $400 over the life of the bond. These bonds are often used by investors looking for a safe investment with a predetermined return and are particularly attractive for long-term financial goals such as funding education or retirement.