Zero interest bonds are always issued
A)At premium
B)At discount
C)With detachable warrant
D)Any of the above

Question

Quizplus · Accepted Answer

Zero interest bonds are typically issued at a discount to their face value, meaning they are sold for less than their nominal value. The investor profits by receiving the full face value at maturity, with the difference between the purchase price and the face value effectively representing the interest earned.

Zero Interest Bonds Are Always Issued