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zero-coupon bond

   Also found in: Medical, Legal, Financial, Encyclopedia, Wikipedia 0.01 sec.
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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


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With Allstate's zero-coupon bonds, which repay face value at maturity but pay no coupons along the way, rising interest rates are the worry.
Influence of interest rates To achieve the protected minimum repayment at maturity, a large proportion of the money invested in the CPU is invested in a zero-coupon bond with the same maturity.
The investment had the same characteristics as a low risk, zero-coupon bond.
 
 
 
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