4.3 Zero rates A zero rate(or spot rate), for maturity T, is the rate of interest earned on an investment that provides a payoff only at time T. In practice. it is usually called zero-coupon interest rate(零息票利率) Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University4.3 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Zero Rates A zero rate (or spot rate), for maturity T, is the rate of interest earned on an investment that provides a payoff only at time T. In practice, it is usually called zero-coupon interest rate (零息票利率)