Zero Coupon Bond is a bond that has no coupon payments. It pays only a single cash flow at maturity. May be taxable outside a qualified retirement vehicle. Usually high quality federal or government bonds originally issued in bearer form, where some or all of the interest coupons have been detached. The bond principal and any remaining coupons trade separately from the strip of detached coupons, both at substantial discounts from par. Also called strip bonds.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). zero coupon bond. Retrieved September 27, 2026, from http://smartdefine.org/zero_coupon_bond/definitions/1166749 |
| Chicago | Barry Goldsmith. 2010. "zero coupon bond" http://smartdefine.org/zero_coupon_bond/definitions/1166749 (accessed September 27, 2026). |
| Harvard | Barry Goldsmith 2010, zero coupon bond, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/zero_coupon_bond/definitions/1166749>. |
| MLA | Barry Goldsmith. "zero coupon bond" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/zero_coupon_bond/definitions/1166749> |