Final answer:
The STC zr05 bond does not provide an investor with cash flow as it is a zero-coupon bond, and these bonds do not offer periodic interest payments but are instead sold at a discount and mature at face value.
Step-by-step explanation:
When evaluating bonds and their cash flows to investors, we look at the coupon rate for periodic interest payments. The question asks which bond does not provide an investor with cash flow. Options a, b, and d, MMSCorp11s18, MaxCo10s10, and SamCorp9s07 respectively, all have specific coupon rates (11%, 10%, and 9%) which suggest that they offer regular interest payments to the bondholder until maturity. However, option c, the STC zr05, has the label 'zr' which stands for zero-rate or zero-coupon, meaning no regular interest payments are made; investors receive the face value at maturity.
Zero-coupon bonds are sold at a discount and do not provide periodic interest payments. The investor's return for a zero-coupon bond is the difference between the purchase price of the bond and the value at maturity. For example, if you have a zero-coupon bond that will be worth $1,000 at maturity and current market interest rates are 12%, you would expect to pay less for this bond than its face value to achieve an equivalent rate of return compared to other investments. Using the provided example calculation, with expected payments of $1,080 one year from now, you would not want to pay more than $964 for that bond today.