A zero coupon bond is a debt obligation that commits the issuer to pay a fixed amount of interest periodically and then repay the principal amount at maturity.

Name: A zero coupon bond is a debt obligation that commits the issuer to pay a fixed amount of interest periodically and then repay the principal amount at maturity.
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Question

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A zero coupon bond does not pay interest periodically; instead, it is sold at a discount to its face value and pays its face value at maturity.

A Zero Coupon Bond Is a Debt Obligation That Commits