Any bond that is issued at a discount is known as:
A) Pure discount bond
B) Zero-coupon bond
C) Original issue discount bond
D) Premium bond

Question

Quizplus · Accepted Answer

An original issue discount bond (OID bond) is issued at a discount from its face value or par, meaning that the bond is sold for less than its principal amount. The difference between the purchase price and the face value of the bond represents the bondholder's return, also known as the original issue discount. A pure discount bond is a type of OID bond that does not make interest payments, while a zero-coupon bond is a type of pure discount bond that does not pay any periodic interest but instead pays the full face value of the bond at maturity. A premium bond is one that is sold for more than its face value, meaning that the bondholder pays a premium for the bond.

Any Bond That Is Issued at a Discount Is Known