zero-coupon bond

/ˌzɪroʊ ˌkuˈpɑn ˈbɑnd/

Other forms: zero-coupon bonds

Definitions 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
   synonyms: zero coupon bond

   type of:

   bond, bond certificate

   a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal

   zero coupon security, zero-coupon security

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