Financial Dictionary, Terms & Glossary  
 

Financial Definitions, Terms & Glossary
A-to-Z Listing   Browse Financial Terms by Letter

Financial terms, financial dictionary

Zero Coupon Bonds Definition


Zero Coupon Bonds - are bonds priced at a large discount from face value. The bonds mature at full face value so the difference between the original issue price and the face value represents interest income. The issuer of the zero coupon bond saves on cash flow since the interest isn't paid out until the end of the bond holding period.

financial terms
Financial-Dictionary.com © Copyright 2009