Definitions for "Zero Coupon Bond"
Keywords:  coupon, discount, par, matures, bond
Bond issued at a discount which accrues interest that is paid in full at maturity.
A bond that pays no interest. The bond is initially offered at a discount to its redemption value.
A type of debt security that does not pay periodic interest. Zero coupon securities are bought and sold at prices that are less than the par value of the securities. The discount, or difference between the principal paid to purchase the security and the principal returned at maturity, constitutes the investor's return.
a loan instrument slightly different from an ordinary debenture