A zero coupon bond is a bond that ______.

Name: A zero coupon bond is a bond that ______.
Brand: Quizplus
Rating: 4.7 (46 reviews)

Question

Quizplus · Accepted Answer

A zero coupon bond is sold initially at a discounted price and does not pay interest periodically. Instead, it is sold at a discount to its face value, and the full face value is paid at maturity. Therefore, option A is the correct answer. The other options are incorrect because a zero coupon bond will not sell for a premium, is not a premium value bond, and does not have a current yield.

A Zero Coupon Bond Is a Bond That ______