noun

• A bond that is issued at a deep discount to its face value but pays no interest.

  ‘It is possible for a corporation to issue a zero-coupon bond, whose current yield is zero and whose yield to maturity is solely a function of the built-in price appreciation.’

  More example sentences

  • ‘A passively managed fund in zero-coupon bonds charges less than 1%.’
  • ‘Floated by the Power Finance Corporation, it is a zero-coupon bond that matures in 2022.’