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zero-coupon

American  
[zeer-oh-koo-pon, -kyoo-] / ˈzɪər oʊˈku pɒn, -ˈkju- /

adjective

  1. of or relating to a debt obligation that bears no interest but that is sold substantially below its face value.


Etymology

Origin of zero-coupon

First recorded in 1975–80

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The company said it would channel proceeds into the early redemption of outstanding $750 million zero-coupon convertible bonds due 2027 and other general corporate purposes.

From The Wall Street Journal • Jun. 16, 2026

While not chasing risk-on consensus, Harnett advises playing lower CPI by going long zero-coupon bonds , mid caps, emerging markets equities, and natural resources.

From MarketWatch • Dec. 19, 2025

A $3 billion zero-coupon bond deal sold a year ago can be put to the company for cash at on June 1, 2028.

From Barron's • Nov. 18, 2025

Traders are also seeing demand for derivatives that offer inflation protection such as zero-coupon inflation swaps, in which a fixed rate payment on an investment is exchanged for a payment at the rate of inflation.

From Reuters • Nov. 23, 2021

The yield is also known as the coupon; in the case of zero-coupon bonds, the financial advantage to investors is that they can purchase bonds at a lower face value.

From Encyclopedia.com • Mar. 31, 2018

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