Which one of the following bonds pays interest only at maturity?

Question

Quizplus · Accepted Answer

Zero-coupon bonds do not pay any interest during their term but are sold at a discount to their face value, so the investor earns a return at maturity when the bond is redeemed for its full face value. The other options - A) Registered bond, B) Registered coupon bond, C) Bearer bond, and E) Junk bond - all pay periodic interest payments to the bondholder throughout the term of the bond.

Which One of the Following Bonds Pays Interest Only at Maturity