Definition of zero-coupon in English:



  • Relating to a debt obligation that pays no interest to the holder until it reaches maturity or is sold.

    ‘volatile zero-coupon bonds pay no interest but are issued of a discount to face value’
    • ‘Verizon Communications issued a $3 billion zero-coupon convertible bond.’
    • ‘Techtronic raised US $140 million with a zero-coupon convertible bond in June.’
    • ‘One example is the auto and truck industry, where marketing is focused on zero-coupon financing and cash givebacks.’
    • ‘One issuer was Lennar Corp., which decided on a zero-coupon co-co in early April.’
    • ‘We find the derived zero-coupon credit spreads to be more volatile than risk-free rates.’
    • ‘Tomson will issue zero-coupon convertible bonds to raise US $50 million, through Deutsche Bank.’