A bond that is issued at a deep discount to its face value but pays no interest.
More 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.
Definition of zero-coupon bond in:
- The British & World English dictionary