zero coupon

adjective

: 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 Investors gobbled up convertible bonds with zero coupon from companies including Airbnb , SoFi , Snap , Ford , DraftKings , Twitter , Shake Shack , Spotify and Dish Network . Corrie Driebusch, WSJ, 4 Feb. 2022 Italy issued one of its mainstream government bonds with a zero coupon for the first time on Oct. 13. Anna Hirtenstein, WSJ, 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, 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, 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, 19 Apr. 2018

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'zero coupon.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1979, in the meaning defined above

Time Traveler
The first known use of zero coupon was in 1979

Dictionary Entries Near zero coupon

Cite this Entry

“Zero coupon.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/zero%20coupon. Accessed 19 Apr. 2024.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!