Zero-coupon bonds are similar to Treasury bills in that both:
A)are issued exclusively by the U.S.Treasury.
B)are money-market securities.
C)are capital-market securities.
D)are sold at less than par.

Question

Quizplus · Accepted Answer

Zero-coupon bonds and Treasury bills are both sold at less than their par value, meaning they are issued at a discount and do not pay periodic interest. Instead, they provide a return to the investor by maturing at their face value.

Zero-Coupon Bonds Are Similar to Treasury Bills in That Both