What is ZERO-COUPON BOND?

Bond that (1) pays no interest but is sold subpar, (2) interest paying bond stripped of its coupon. Also known as non-interest bearing bond, zero interest bond, zero rated bond.

More On This Topic
  1. What are peace bonds and do they exist in the U.S.?
  2. Three Important Points to Remember About Bid Bonds
  3. How to Bail Someone Out of Jail
  4. Nepotism, Cronyism, & Favoritism: Illegal Or Unethical?
  5. Mortgage Law: Judicial vs. Non-Judicial Foreclosure
  6. What Percent of My Portfolio Should I Put into Stock Mutual Funds and Bond Mutual Funds?
  7. Two Instances In Which Persona Non Grata Can Have Consequences For An Individual
  8. I Have A Bench Warrant. Can I Have A Lawyer Appear For Me?
  9. How Do Bail Bonds Work?
  10. How To Spot And Protect Yourself From Scams

Related Legal Terms
ZERO COUPON BOND, ZERO COUPON CONVERTIBLE BOND, BOND COUPON RATE, ZERO COUPON CONVERTIBLE, LONG COUPON, ACCRUAL BOND, SPLITCOUPON BOND, BOND VALUE, SHORT COUPON, DEEP DISCOUNT BOND


Link to This Definition
Did you find this definition of ZERO-COUPON BOND helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary