zero-coupon bond

Popular Terms
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.

Use 'zero-coupon bond' in a Sentence

The zero-coupon bond was included in our investment portfolio as we wanted to diversify our investment strategy by including many variations.
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I realized that a zero-coupon bond would be a good choice, so I decided to go for it and it ended up paying off.
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You can sometimes get a great value on a zero-coupon bond and it can be a great investment if you have the cash for it.
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