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zero-coupon security

DEFINITIONS OF: zero-coupon security

1

n a security that makes no interest payments but instead is sold at a deep discount from its face value

Synonyms:
zero coupon security
Types:
zero coupon bond, zero-coupon bond
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
Type of:
certificate, security
a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends
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