minicoupon bond

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Minicoupon Bond

A bond in which the coupon payments are lower than the market rate at the time of the bond's issue. Minicoupon bonds are usually sold at a discount from their face value so as to attract investors. Zero-coupon bonds are a subset of minicoupon bonds.

minicoupon bond

A bond with a coupon lower than the market rate of interest at the time of issue, resulting in sale of the bond at a discount from face value at issuance. A zero-coupon bond is a special type of minicoupon bond. Compare original-issue discount bond. See also deep-discount bond.