Definition of 'zero coupon bond'

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1. (noun) 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
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"zero coupon bond." Definitions.net. STANDS4 LLC, 2008. 7 October. 2008. http://www.definitions.net/definition/zero coupon bond