Advertisement - Continue reading below

Definition of "zero-coupon" []

  • Paying no interest to the holder until maturity or sale: a zero-coupon bond. (adjective)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Use "zero-coupon" in a sentence
  • "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."
  • "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."
  • "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."