zero coupon bond

(redirected from Coupon strip)
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Related to Coupon strip: Strip Bond
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Synonyms for zero coupon bond

a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond

References in periodicals archive ?
Making them strippable would truly enhance the overall liquidity of the market because it would create a fresh supply of coupon STRIPS, which in turn would actually facilitate the reconstitution process.
By contrast, the coupon payment stream may be created from coupon STRIPS derived from any security; that is, coupon STRIPS with the same maturity date are fungible.
The only legitimate reason for not using an internal coupon strip process is the absence of multiple lines with varying maturities.
Treasury Coupon Strip due April 2000 and the comparable treasury yield for the Subordinated Notes will be the yield on the 5-1/4% U.
Principal STRIPS often trade at a premium relative to coupon STRIPS because principal STRIPS implicitly contain certain options.
These are created, for example, when a government bond is split into its two components - the residual bond followed by the interest payment series called coupon strips.