What characteristic is unique to zero-coupon bonds?

Zero-coupon bonds are distinct in that they do not make periodic interest payments. Instead, they are sold at a discount to their face value and provide returns to investors when they mature, as the investor receives the face value of the bond at that time. This characteristic allows them to be particularly appealing for investors looking for a predictable return at a specified future date without the complexity of managing periodic interest payments.

The other options do not apply specifically to zero-coupon bonds. For instance, fixed interest payments characterize traditional coupon bonds, while the assertion about issuance being limited to governments is inaccurate, as both corporations and municipalities can issue zero-coupon bonds. Additionally, while zero-coupon bonds can have varying maturities, stating that they must have a maturity of more than ten years does not reflect their flexible nature, as they can also be issued with shorter maturities. Understanding these aspects highlights why the absence of periodic interest payments is a unique and defining characteristic of zero-coupon bonds.