zero-coupon

[ zeer-oh-koo-pon, -kyoo- ]

adjective

1. of or relating to a debt obligation that bears no interest but that is sold substantially below its face value.

Word History and Origins

Origin of zero-coupon¹

First recorded in 1975–80

Example Sentences

The yield is also known as the coupon; in the case of zero-coupon bonds, the financial advantage to investors is that they can purchase bonds at a lower face value.

From Encyclopedia.com

It will then convert zero-coupon swaps on July 3 along with any U.S.

From Reuters

Traders are also seeing demand for derivatives that offer inflation protection such as zero-coupon inflation swaps, in which a fixed rate payment on an investment is exchanged for a payment at the rate of inflation.

From Reuters

I bought Series E zero-coupon bonds that matured in 10 years, and I was promised that I’d get a 33% return at maturity.

From Seattle Times

Q: What are zero-coupon bonds?

From Seattle Times