zero-coupon bond

Definition of "zero-coupon bond"
  1. A type of bond that is purchased at a price far less than its face value, does not yield annual interest, and can be cashed in for its full value when it reaches its due date
How to use "zero-coupon bond" in a sentence
  1. The investor decided to buy a zero-coupon bond, knowing that he wouldn't receive annual interest but would make a profit at maturity.
  2. A zero-coupon bond was the best option for the long-term investment plan.
  3. They found value in investing in a zero-coupon bond, even without the draw of yearly interest.

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