zero-couponhttp://www.oed.com/dictionary/zero-coupon_adj%3Ftab%3Dmeaning_and_usezero-coupon, adj.
Revised 2018

zero-couponadjective

Finance.
  1. 1979–
    Designating a bond or other debt obligation for which no interest is paid, being issued below its redemption price, with the full amount payable on maturity; of or relating to a bond, etc., issued in this way; esp. in zero-coupon bond.
    1. 1979
      The relationship between yield curves for zero coupon bonds and coupon-bearing bonds is important.
      Journal Finance vol. 34 189
    2. 1981
      BAC will file a registration statement..relating to the offer of zero coupon notes to mature in 1990.
      Financial Times 19 September 16/1
    3. 1994
      The most junior bonds, the zero-coupon issue due in 2006, would fetch 13.3 cents on the dollar.
      New York Times (Nexis) 15 July d4/5
    4. 2014
      Japanese investors flocked to zero coupon bonds as all income could be declared as a capital gain.
      C. O'Malley, Bonds without Borders (2015) iv. 77

Originally published as part of the entry for zero, n. & adj.

zero, n. & adj. was revised in June 2018.