ever hear of zero-coupon bonds? sold at a huge discount to par. pay no interest. at maturity receive par. then there are bonds that are not zero-coupon but have original issue discount (OID). even some US treasury securities are zero-coupon or have OID. also real estate mortgage investment conduit (REMIC), collateralized debt obligation (CDO) and even certificates of deposit. see PUBs 550, 938 and 1212
