zero-coupon security

/ˌkuˈpɑn səˌkjʊrədi/

Definitions of zero-coupon security

1. noun

   a security that makes no interest payments but instead is sold at a deep discount from its face value
   synonyms: zero coupon security

   types:

   zero coupon bond, zero-coupon bond

   a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond; the commonest form of zero-coupon security

   type of:

   certificate, security

   a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends