Which of the following investments does not make interest payments annually but is sold at a discount, with the face value of the security paid at maturity?
A) Preferred stock
B) Preferred bonds
C) Zero-coupon bonds
D) Convertible preferred stock

Question

Quizplus · Accepted Answer

Zero-coupon bonds are sold at a discount to their face value and do not make interest payments annually. However, they are redeemed at their full face value at maturity. Preferred stock, preferred bonds, and convertible preferred stock all pay regular interest or dividend payments.

Which of the Following Investments Does Not Make Interest Payments