Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy

Question

asked May 22, 2021 191k views

1 Answer

← Prev Question Next Question →

Ask a Question

Skie · Answer 1 · 2021-05-28T09:22:19+0000

Answer:

A zero coupon bond

Step-by-step explanation:

A zero coupon bond is a bond that does not pay interest but it is usually issued at a large discount to the face value. The full price of the bond is paid at maturity

For example, the face value of a bond might be $1000 but it's market price is $900.

we market price is less than its face value

Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions