Definition of zero-coupon bond in English:

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zero-coupon bond


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.

For editors and proofreaders

Syllabification: ze·ro-cou·pon bond

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