Definition of zero-coupon bond in English:

Share this entry

zero-coupon bond

noun

A bond that is issued at a deep discount to its face value but pays no interest.
Example sentences
  • It is possible for a corporation to issue a zero-coupon bond, whose current yield is zero and whose yield to maturity is solely a function of the built-in price appreciation.
  • A passively managed fund in zero-coupon bonds charges less than 1%.
  • Floated by the Power Finance Corporation, it is a zero-coupon bond that matures in 2022.
Share this entry
 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.