Meaning of zero-coupon

ze•ro-cou•pon

Pronunciation: (zēr'ō-k'pon, -ky'-), [key]
— adj.
  1. of or pertaining to a debt obligation that bears no interest but that is sold substantially below its face value.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.