Search box


Definition: Zero coupon bonds

ECB terminology

All issues without coupon payment. Usually such bonds are issued at a discount and redeemed at par. They also include bonds issued at par and redeemed at a premium, for example bonds with the redemption value linked to an exchange rate or an index. Most of the discount or premium represents the equivalent of the interest accrued during the life of the bond.
European Central Bank, Guideline of the European Central Bank of 1 August 2007 on monetary, financial institutions and markets statistics (recast), Official Journal of the European Union No L 341, 27.12.2007, p. 1 - 232