zero-coupon bond

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
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    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
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