Definition of zero-coupon bond in English:

zero-coupon bond

noun

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

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