A(n)____ is a bond that pays no annual interest but is sold at a discount below par,thus providing compensation to investors in the form of capital appreciation.
A) coupon bond
B) income bond
C) convertible bond
D) zero coupon bond
E) callable bond

Question

Quizplus · Accepted Answer

A zero coupon bond is a bond that is sold at a discount below par and pays no annual interest. This type of bond provides compensation to investors in the form of capital appreciation as it is sold at a discount but redeemed at full face value at maturity.

A(n)____ Is a Bond That Pays No Annual Interest but Is