Zero-coupon bonds are sold at face value because no interest is paid.
They are sold at a deep discount and grow to maturity value.

Question

Quizplus · Accepted Answer

Zero-coupon bonds are sold at a deep discount below face value because no interest is paid. They do not grow to maturity value, but instead provide a return on investment based on the difference between purchase price and face value at maturity.

Zero-Coupon Bonds Are Sold at Face Value Because No Interest