Definitions

from The American Heritage® Dictionary of the English Language, 5th Edition.

  • adjective Paying no interest to the holder and sold at a discount from face value.

Etymologies

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Examples

  • Let's not worry our bald heads with things like zero-coupon bonds and the rest.

    "Everyman Paulson might leave if he doesn't get his way" (Jack Bog's Blog) 2009

  • If this were used to buy zero-coupon bonds, as under the July 21 deal, then it might protect 80% of the principal of any new bonds, according to Barclays Capital.

    Big Euro-Crisis Question Has Still to Be Answered Simon Nixon 2011

  • Apart from paying interest on its own bonds under the first option, Greece would in effect have to pay the economic costs of financing the 20% invested in zero-coupon bonds, adding to its debt-servicing costs.

    Details Emerge on Greek Debt Proposals Stephen Fidler 2011

  • For options one through three, principal repayment is guaranteed by a zero-coupon 30-year bond issued by a triple-A borrower.

    Investors' Big Fat Greek Choice Richard Barley 2011

  • Under the only scenario that investors are likely to accept, a little more than half of the face-value of a €100 bond would be redeemed for cash and a triple-A, sovereign, zero-coupon bond.

    The French Deception 2011

  • An additional 20% of proceeds from the maturing debt would be invested in top-quality zero-coupon bonds, which pay no annual interest but increase in value yearly.

    Details Emerge on Greek Debt Proposals Stephen Fidler 2011

  • Apart from paying interest on its own bonds under the first option, Greece would in effect have to pay the economic costs of financing the 20% invested in zero-coupon bonds, adding to its debt-servicing costs.

    Details Emerge on Greek Debt Proposals Stephen Fidler 2011

  • An additional 20% of proceeds from the maturing debt would be invested in top-quality zero-coupon bonds, which pay no annual interest but increase in value yearly.

    Details Emerge on Greek Debt Proposals Stephen Fidler 2011

  • The proposal, which emerged from a meeting Friday of French banks, has echoes of the Brady Plan of the late 1980s, where U.S. Treasury zero-coupon bonds were purchased to provide guarantees of repayment at maturity by government borrowers in Latin America.

    Push for Private Help for Greece Stephen Fidler 2011

  • For instance, under option one, the interest payments discounted at 9% are worth 46.3% of par, while the 30-year zero-coupon bond is worth 32.7%, giving a price of 79% of face value, Barclays Capital notes.

    Investors' Big Fat Greek Choice Richard Barley 2011

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