zero coupon bond

(redirected from Coupon strip)
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Related to Coupon strip: Strip Bond
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Noun1.zero coupon bond - a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bondzero coupon bond - 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
governing, government activity, government, governance, administration - the act of governing; exercising authority; "regulations for the governing of state prisons"; "he had considerable experience of government"
corp, corporation - a business firm whose articles of incorporation have been approved in some state
bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
zero coupon security, zero-coupon security - a security that makes no interest payments but instead is sold at a deep discount from its face value
References in periodicals archive ?
It is reasonable to say that a November 2009 coupon STRIP would trade 25 to 35 basis points cheaper than the two issues around it, creating a distortion in the yield curve.
The final coupon STRIP and the principal STRIP are treated as distinct securities despite having identical maturity date's.
Products with longer-term liablities willingly participate in the coupon strip because they get an asset (the strip) effectively tailored to their liabilities.