zero-coupon 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 ?
Downes and Goodman present 30 investment strategies from annuities to zero-coupon securities detailing the basics about buying and selling, objectives, and risk, tax, and economic considerations for each; a table summarizes key criteria applied to these strategies.
Zero-coupon securities are frequently used to meet specific financial or investment goals, especially when the date of a future need is known well in advance.
Thus, in this case, the yield spread between comparable nominal and indexed zero-coupon securities should (approximately) equal the future rate of inflation.
There are several types of assets, which appear in cash-flow CDO transactions, that do not pay timely interest in cash: zero-coupon securities, securities with a mismatch in payment frequency in comparison to the rated liabilities (i.