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.
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zero-coupon bond is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
zero-coupon bond appears in the definitions of the following terms: zero-rated bond, accrual bond, deep discount bond, zero-interest bond, split coupon bond, compound accreted value, non interest bearing bond and zero coupon convertible
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