The bond that you own does not pay any interest. Instead, it is sold at a "discount" from its maturity value. This is a ________ bond.

Question

asked Mar 18, 2020 144k views

1 Answer

← Prev Question Next Question →

Ask a Question

Rajul · Answer 1 · 2020-03-23T06:04:53+0000

Answer:

The correct anwer is zero coupon.

Step-by-step explanation:

A zero coupon bond is one in which there is no periodic payment of interest during the life of the bond and is sold at a discount well below its nominal value. The holder receives a return that is generated through the gradual appreciation of the security and it is redeemed at a predefined date in the future.

The bond that you own does not pay any interest. Instead, it is sold at a "discount" from its maturity value. This is a ________ bond.

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

The bond that you own does not pay any interest.​ Instead, it is sold at a​ "discount" from its maturity value. This is a​ ________ bond.

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

The bond that you own does not pay any interest. Instead, it is sold at a "discount" from its maturity value. This is a ________ bond.