Which of the following are TRUE for discount bonds?
A)A discount bond is bought at par.
B)The purchaser receives the face value of the bond at the maturity date.
C)U)S. Treasury bonds and notes are examples of discount bonds.
D)The purchaser receives the par value at maturity plus any capital gains.

Question

Quizplus · Accepted Answer

Discount bonds are purchased below their face (or par) value and at maturity, the holder receives the face value of the bond, realizing a gain equal to the difference between the purchase price and the face value.

Which of the Following Are TRUE for Discount Bonds