Definition of zero-coupon bond in English:
A bond that is issued at a deep discount to its face value but pays no interest.
- 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.
Definition of zero-coupon bond in:
- British & World English dictionary
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in the UK
Most popular in Australia
Most popular in Malaysia
Most popular in India
Most popular in Pakistan