zero coupon


Definition of zero coupon

: of, relating to, or being an investment security that is sold at a deep discount, is redeemable at face value on maturity, and that pays no periodic interest zero coupon municipal bonds

Examples of zero coupon in a Sentence

Recent Examples on the Web Italy issued one of its mainstream government bonds with a zero coupon for the first time on Oct. 13. Anna Hirtenstein, WSJ, "Europe’s Riskiest Countries Find Debt Markets Wide Open," 20 Oct. 2020 For the first time in living memory, the Italian Treasury this week sold Italian bonds that carried a zero coupon. Bernhard Warner, Fortune, "As COVID cases spike in Europe, Italy stands out—but this time for doing things right," 15 Oct. 2020 Nevertheless, the fact that zero coupon Italian debt is seen as a good deal is a sign of a deeply dysfunctional debt market, with serious implications for insurance companies, pensioners, and savers. Andrew Stuttaford, National Review, "The Capital Note: Interest Rates at Four Thousand Year Lows (What Could Go Wrong?)," 13 Oct. 2020 Those notes are significantly discounted, with the company receiving just 50 cents in cash for every dollar accrued as zero coupon debt. Lukas I. Alpert, WSJ, "National Enquirer Parent, Staunch Trump Backer, Faces Mounting Debt, Shrinking Sales," 19 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'zero coupon.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of zero coupon

1979, in the meaning defined above

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Time Traveler for zero coupon

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The first known use of zero coupon was in 1979

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Cite this Entry

“Zero coupon.” Dictionary, Merriam-Webster, Accessed 28 Feb. 2021.

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