Definitions
There is 1 meaning of the phrase
Zero-Coupon Bond.
Zero-Coupon Bond - as a noun
A 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
Example Sentences
"Investors can purchase a zero-coupon bond at a discount and receive the full face value at maturity."
"The principal amount of a zero-coupon bond is typically paid back in a lump sum at maturity."
"Since zero-coupon bonds do not pay periodic interest, they are typically sold at a deep discount."
"The lack of periodic interest payments makes zero-coupon bonds less attractive to income-seeking investors."
"The value of a zero-coupon bond is primarily determined by the length of time until maturity."
