Which type of bond sells at a discount from face value, then increases in value annually until it reaches maturity and provides the owner with the total payoff?
A) High-yield bonds.
B) Commodity-backed bonds.
C) Zero coupon bonds.
D) Junk bonds.

Question

Quizplus · Accepted Answer

Zero coupon bonds are sold at a discount and do not pay periodic interest. Instead, they increase in value over time and pay the face value at maturity.

Which Type of Bond Sells at a Discount from Face