A zero coupon bond is an example of a(n) .
A)fixed income security
B)original issue deep discount bond
C)tax-exempt bond
D)fixed income security and an original issue deep discount bond

Question

Quizplus · Accepted Answer

A zero coupon bond is a type of fixed income security that is also classified as an original issue deep discount bond. It is called a discount bond because it is initially sold at a discount to its face value and does not make periodic interest payments ("zero coupon"), but rather pays out a lump sum at maturity.

A Zero Coupon Bond Is an Example of A(n)