zero-coupon security

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Definitions from WordNet

Noun zero-coupon security has 1 sense

zero-coupon security - a security that makes no interest payments but instead is sold at a deep discount from its face value
--₁ is a kind of security, certificate
--₁ has particulars: zero-coupon bond

Definitions from the Web

zero-coupon security

Definition: A zero-coupon security is a financial instrument that does not provide periodic interest payments but instead is issued at a discount and redeemed at face value at maturity.

Senses:

Zero-coupon bond: A type of zero-coupon security where the issuer offers the bond at a discount and pays no interest until maturity.
Zero-coupon CD: A zero-coupon security issued by a bank with a fixed term length, typically sold below face value and redeemed at face value at maturity.

Samples Sentences:

Zero-coupon bond:

The investor purchased a zero-coupon security with a 10-year maturity.
Despite not receiving interest income, zero-coupon bonds can be a useful investment strategy for long-term financial goals.

Zero-coupon CD:

The bank issued a zero-coupon security with a guaranteed return for five years.
Investing in zero-coupon CDs can be a low-risk way to grow your savings over time.

Related products on Amazon:

Zero-Coupon Bonds

Zero-Coupon CDs

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