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

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

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

According to the daily Le Figaro, the deal would see creditors reinvest 70 percent of the proceeds when Greek debt comes due, receiving longer-term bonds and shares in a zero-coupon fund.

From Reuters • Jun. 27, 2011

The zero-coupon 2012 bonds were sold at an average yield of 2.451 percent, compared with 2.55 percent at the previous auction of the securities on Feb. 23.

From BusinessWeek • Mar. 28, 2011