Glossary

Zero Coupon Bond

Bonds that do not make interest (coupon) payments prior to maturity.
Zero-Coupon Convertible Security

A zero-coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security.
Also refers to zero-coupon bonds, which are convertible into an interest bearing bond at a certain time before maturity.

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