zero coupon bond Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “zero coupon bond” in the English Dictionary

"zero coupon bond" in Business English

See all translations

zero coupon bondnoun [C]

uk   us  
(also zero) FINANCE a ​type of ​bond that does not ​payinterest, but that you ​buy for less than its face ​value , so that you make a ​profit when it is ​paid back: Zero ​couponbonds are more ​sensitive to ​interestratechanges than ​bonds that ​payinterest periodically. Most zeros are still ​offeringreturns of over 8%.
(Definition of zero coupon bond from the Cambridge Business English Dictionary © Cambridge University Press)
What is the pronunciation of zero coupon bond?
Add Cambridge dictionaries to your browser to your website
Word of the Day

fire-eater

a performer who entertains people by seeming to swallow flames

Word of the Day

PLEASE DON’T SHOUT!
PLEASE DON’T SHOUT!
by Colin McIntosh,
February 09, 2016
New words are entering the language all the time. A few of these are completely new and original coinages, but the vast majority are based on the existing stock of words in some way, for example by using affixes (prefixes and suffixes). These can have the effect of changing the meaning of the

Read More 

farecasting noun
farecasting noun
February 08, 2016
predicting the optimum date to buy a plane ticket, especially on a website or using an app A handful of new and updated websites and apps are trying to perfect the art of what’s known as farecasting – predicting the best date to buy a ticket.

Read More