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The Total Interest Paid on a Zero-Coupon Bond Is Equal

Question 75

Multiple Choice

The total interest paid on a zero-coupon bond is equal to:


A) zero.
B) $1,000 minus the par value.
C) $1,000 minus the face value.
D) the face value minus the market price on the maturity date.
E) the face value minus the issue price.

Correct Answer:

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