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Definition of Zero coupon bond
1. Noun. 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.
Exact synonyms: Zero-coupon Bond
Category relationships: Administration, Governance, Governing, Government, Government Activity, Corp, Corporation
Generic synonyms: Bond, Bond Certificate, Zero Coupon Security, Zero-coupon Security
Category relationships: Administration, Governance, Governing, Government, Government Activity, Corp, Corporation
Generic synonyms: Bond, Bond Certificate, Zero Coupon Security, Zero-coupon Security
Definition of Zero coupon bond
1. Noun. (finance) A 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. ¹
¹ Source: wiktionary.com
Lexicographical Neighbors of Zero Coupon Bond
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