designating or of a bond sold at a discount and redeemed upon maturity at its face value, with no periodic payments of interest
Paying no interest to the holder and sold at a discount from face value: a zero-coupon bond.
(plural zero coupons)
- (usually used attributively, finance) A non-existent coupon.
- They decided to issue a note with a zero coupon.
- (finance) A financial security that does not pay interest periodically.
- Their trademarked financial structure involved issuing several kinds of zero coupons.