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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.


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.

Austria managed to issue zero-coupon 100-year bonds in 2020, while in the late 2010s investors started by lending to universities and Mexico, but eventually were willing to lend for 100 years to flaky sovereigns including Argentina, attracted by what seemed like high yields compared with earning nothing on cash.

From The Wall Street Journal

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

Anticipating the Fed’s capitulation to market pressure, Bank of America’s chief equity strategist doubled down on his call to go long zero-coupon U.S.

From MarketWatch

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

The stock drop occurred amid apparent investor concerns over the company’s ability to service the preferred dividends and debt interest costs, as well as the potential need to pay off a $3 billion issue of zero-coupon convertible debt that can be redeemed by investors in June 2028.

From Barron's