zero coupon bond

English

Noun

zero coupon bond (plural zero coupon bonds)

1. (finance) A bond (e.g., corporate debenture or government debt) that has no coupon (i.e., pays no interest), during the life of the issue. Such a bond is initially sold at a discount to its face value. The rate of return to the holder is derived from the gradual appreciation as the security moves toward maturity.

Synonyms

• zero-coupon note

Translations

bond that has no coupon

• Czech: zerobond (cs) m
• Finnish: nollakuponkilaina (fi)
• German: Nullkuponanleihe (de), Zerobond (de) m
• Swedish: nollkupongobligation c, nollkupongare c