zero coupon bond

noun

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.

Similar
zero-coupon notezero-coupon bond

Meanings

nounzero coupon bond (plural zero coupon bonds)

plural zero coupon bonds

  1. businessA 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

Synonyms & antonyms

nounA 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.

More synonyms by meaning

nouna bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond; the commonest form of zero-coupon security

Similar
zero-coupon bond
Broader
zero-coupon securityzero coupon securitybondbond certificate

Synonym sets from Open English WordNet, CC BY 4.0.

Translations

Chinese Mandarin 零息債券 /零息债券
  • 零息債券 /零息债券 (língxīzhàiquàn)bond that has no coupon
Czech zerobond
  • zerobondbond that has no coupon
Finnish nollakuponkilaina
  • nollakuponkilainabond that has no coupon
German Nullkuponanleihe, Zerobond
  • Nullkuponanleihebond that has no coupon
  • Zerobondbond that has no coupon
Swedish nollkupongobligation, nollkupongare
  • nollkupongobligationbond that has no coupon
  • nollkupongarebond that has no coupon
Cite this entry
APA

zero coupon bond. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/zero%20coupon%20bond

MLA

“zero coupon bond.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/zero%20coupon%20bond. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “zero coupon bond,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/zero%20coupon%20bond.

Source: zero coupon bond on Wiktionary, CC BY-SA 4.0.