Which of the following is correct? A zero coupon bond _________________.
A) Typically pays coupons only during the first five years.
B) Sells for a price that is greater than the face value.
C) Has no interest payments and is thus not taxable until maturity.
D) Is also known as a deep discount bond.
E) Provides no cash flow to the holder at maturity.
Correct Answer:
Verified
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