The return on a zero-coupon bond is derived from the difference between the purchase price of the bond and its par value.

Name: The return on a zero-coupon bond is derived from the difference between the purchase price of the bond and its par value.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

Zero-coupon bonds do not pay periodic interest; instead, they are sold at a discount and mature at their par value, with the return being the difference between the purchase price and the par value.

The Return on a Zero-Coupon Bond Is Derived from the Difference