If a zero-coupon bond sells for par, the nominal interest rate on that bond is:

Name: If a zero-coupon bond sells for par, the nominal interest rate on that bond is:
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A zero-coupon bond does not pay interest during its life, but it is sold at a discount that implies a return for the investor when the bond reaches maturity. If the bond sells for par value, it means that the purchase price and the face value are the same. Therefore, the nominal interest rate on that bond would be zero.

If a Zero-Coupon Bond Sells for Par, the Nominal Interest