1. 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; [syn: zero coupon bond, zero-coupon bond]
WordNet (r) 3.0 (2006):
zero-coupon bond
n 1: 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 [syn: zero
coupon bond, zero-coupon bond]