Zero Coupon Bond

Financial Definition of Zero Coupon Bond

Meaning of Zero Coupon Bond

Such a debt security pays an investor no interest. It is sold at a discount to its face price and matures in one year or longer.

Legal Definition of Zero Coupon Bond

A bond that pays no interest but is priced, at issue, at a discount from its redemption price.

Related Entries of Zero Coupon Bond in the Encyclopedia of Law Project

Browse or run a search for Zero Coupon Bond in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Zero Coupon Bond in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Zero Coupon Bond in Historical Law in the Encyclopedia of Law.

Legal Abbreviations and Acronyms

Search for legal acronyms and/or abbreviations containing Zero Coupon Bond in the Legal Abbreviations and Acronyms Dictionary.


You might be interested in these references tools:

Resource Description
Zero Coupon Bond in the Dictionary Zero Coupon Bond in our legal dictionaries
Related topics Browse topics from the World Wiki Encyclopedia of Law
Browse the Legal Thesaurus Find synonyms and related words of Zero Coupon Bond
Legal Maxims Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law
Legal Answers (Q&A) A community-driven knowledge creation process, of enduring value to a broad audience
Related topics Zero Coupon Bond in the World Encyclopedia of Law

What is Zero Coupon Bond?

Vocabularies (Semantic Web Information)


Resource Description
Topic Map A group of names, occurrences and associations
Topic Tree A topic display format, showing the hierarchy
Sitemap Index Sitemap Index, including Taxonomies The URI of Zero Coupon Bond (more about URIs)

United States Tax Concept of Zero Coupon Bond

Zero-coupon bonds are bonds priced at a large discount from face value. The difference between the purchase price and the face value is your interest. If you buy a zero-coupon bond, every year as it gets closer to maturity the bond increases in value. You pay tax annually on this increase in value, which you recognize as interest income.


Leave a Reply

Your email address will not be published. Required fields are marked *