zero-coupon

American  

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

adjective

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

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Etymology

Origin of zero-coupon

First recorded in 1975–80

Example Sentences

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

The note is titled “From zero to hero” because since the summer, Hartnett’s recommendation to buy zero-coupon U.S.

From MarketWatch • Oct. 24, 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

Treasury Secretary Nicholas Brady, enabled 17 countries in Latin America, Africa, Asia and Eastern Europe to swap bad loans for new debt starting in 1989, some of which was backed by zero-coupon U.S.

From BusinessWeek • Jan. 17, 2011