How are investors in zero-coupon bonds compensated for making such an investment?
A) Such bonds are purchased at a discount to their face value.
B) The bond makes regular interest payments.
C) The face value of these bonds is less than the value of the bond when the bond matures.
D) Such bonds are purchased at their face value and sold at a premium at a later date.
Correct Answer:
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Q24: A 20-year bond with a $1000 face
Q25: Use the figure for the question(s) below.
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