zero coupon bond love

zero coupon bond

Definitions

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • n. A bond (e.g., corporate debenture or government debt) that has no coupon (i.e., pays no interest), during the life of the issue. Such a bond is initially sold at a discount to its face value. The rate of return to the holder is derived from the gradual appreciation as the security moves toward maturity.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

  • n. 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

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