zero interest bond JUST WRITTEN FOR YOU
/ˈziːroʊ ˈɪntrəst baɪnd/ · ze.ro in.ter.est bond
noun
- A type of bond that does not pay interest to the investor. The company issued a zero-interest bond to raise capital without incurring interest expenses.
- A bond with a very low interest rate, often near zero. The investor purchased a zero-interest bond with a low coupon rate, hoping to benefit from the principal return.
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Did you know? Zero-interest bonds are often used by companies to raise capital in low-interest-rate environments, allowing them to avoid paying interest expenses and instead focus on principal repayment.