zero-coupon definition by Webster's New World
Webster's New World College Dictionary Copyright © 2010 by Wiley Publishing, Inc., Cleveland, Ohio. Used by arrangement with John Wiley & Sons, Inc.
designating or of a bond sold at a discount and redeemed upon maturity at its face value, with no periodic payments of interest
zero-coupon definition by American Heritage Dictionary
Paying no interest to the holder until maturity or sale: a zero-coupon bond.