zero coupon

Definition of "zero coupon"
  1. A lending deal where instead of regular payments, a lender provides money less the interest and then receives the full amount back at the end of the term
How to use "zero coupon" in a sentence
  1. To gain a lump sum at his retirement, John opted for a zero coupon bond.
  2. She found the zero coupon option attractive for its big payoff at the end.
  3. The finance company issued zero coupon bonds to attract long-term savers.

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