zero-coupon bond
Definition
Bond that (1) pays no interest but instead is sold at a deep discount on its par-value, or (2) an interest paying bond that has been stripped of its coupon which is sold separately as a security in its own right. Bondholder's income is determined by the difference between the bond's redemption value on maturity and its purchase price. Also called non-interest bearing Bond, zero interest bond, or zero rated bond. See also deep discount bond.
Mentioned in these definitions
Popular 'Banking, Commerce & Finance' Terms
zero-coupon bond in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/zero-coupon-bond.html
