Zero-coupon rate - Financial definition
Financial acronyms
The entire acronym collection of this site is now also available offline with this new app for iPhone and iPad.
Concise definition of the term zero-coupon rate
An interest rate in which all of the interest is paid at the end of a period, e.g. for a two-year period the interest would be paid at the end of year two (there would be no interim coupons or cash flows).
Comprehensive definition of the term zero-coupon rate
Alternatively, could be the rate on a zero-coupon bond that pays no coupons but is sold at a deep discount to par.