A variant of the fixed-for-floating interest rate swap in which the floating-rate payer makes periodic interest payments, whilst the fixed-rate payer doesn’t pay a periodic coupon, but rather pays all coupons, after compounding, at the maturity date of the swap. Parties who hold zero coupon assets and wish to avoid cash outlays for interest payments during the tenors of these assets can find this type of swap particularly useful. In other words, they can use it to create synthetic zero coupon bonds by combining them with a rollover strategy involving short-term money market instruments.