zero coupon bond
A bond that has no coupon, during the life of the issueA bond (e.g., corporate debenture or government debt) that has no coupon (i.e., pays no interest), during the life of the issue. Such a bond is initially sold at a discount to its face value. The rate of return to the holder is derived from the gradual appreciation as the security moves toward maturity.
Meaning
1 sensesA bond (e.g., corporate debenture or government debt) that has no coupon (i.e., pays no interest), during the life of the issue. Such a bond is initially sold at a discount to its face value. The rate of return to the holder is derived from the gradual appreciation as the security moves toward maturity.
Nullkuponanleihe, Zerobond
a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond; the commonest form of zero-coupon security
Translations
1 languagesBy meaning 1
Forms
plural: zero coupon bonds| Singular | zero coupon bond |
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| Plural | zero coupon bonds |
regular
Synonyms
2 synonyms- a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond; the commonest form of zero-coupon security:zero-coupon bond