Accumulation Bond

An accumulation bond is basically a cute zero coupon bond. They simply sell at a discount to par, and the annual imputed appreciation of the bond is viewed by the kindly loving people at the IRS as an accumulation of interest. So the bond holder pays interest each year that accumulates on that bond, essentially sucking liquidity out of their bank accounts, only to be salvaged at the very end, when the bond finally comes due and pays back principal at par.