zero coupon bonds

A form of zero coupon bond — 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.

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Meanings

noun
  1. pluralplural of zero coupon bond
Cite this entry
APA

zero coupon bonds. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/zero%20coupon%20bonds

MLA

“zero coupon bonds.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/zero%20coupon%20bonds. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “zero coupon bonds,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/zero%20coupon%20bonds.

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