Zero Coupon Bond (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

A bond sold at a discount that doesn’t pay periodic interest; you earn a profit when it matures at its full face value.

What to consider

Know that this feature protects you from fraudulent charges.
Keep your contact information up to date with your card issuer.
Regularly review your statements to catch any issues early.

Real world scenarios

To lock in a long-term investment, Isabella purchased a zero coupon bond, which was sold at a discount and would pay its full face value upon maturity.

Related terms

Investments & Retirement

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