zero-coupon note

Noun.  (finance) A promissory note that pays at maturity the value of the note with no separate interest payments, the effective interest arising from the discounted purchase price.

This is an unmodified, but possibly outdated, definition from Wiktionary and used here under the Creative Commons license. Wiktionary is a great resource. If you like it too, please donate to Wikimedia.

This entry was last updated on RefTopia from its source on 3/20/2012.