zero-coupon

American

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

adjective

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.

See Examples For:

zero-coupon

Analysts trace the genesis of Stretch’s current distress to May, when Strategy tapped its cash reserve to repurchase $1.5 billion in zero-coupon convertible senior notes due in 2029.

From The Wall Street Journal ● Jun. 30, 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

It will then convert zero-coupon swaps on July 3 along with any U.S.

From Reuters ● May 2, 2023

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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Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023