A _______ makes only a single payment of face value at maturity.
A) Treasury bond
B) Treasury note
C) certificate of deposit
D) pure discount security
E) nominal security

Question

Quizplus · Accepted Answer

Pure discount securities are issued at a discount and make only a single payment of the face value at maturity. Treasury bonds and Treasury notes make semi-annual interest payments and a final payment of the face value at maturity. Certificates of deposit make interest payments and return the principal at maturity. The term "nominal security" is not a commonly used financial term.

A _______ Makes Only a Single Payment of Face Value