zero-coupon bond
- 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
- The investor decided to buy a zero-coupon bond, knowing that he wouldn't receive annual interest but would make a profit at maturity.
- A zero-coupon bond was the best option for the long-term investment plan.
- They found value in investing in a zero-coupon bond, even without the draw of yearly interest.
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