A bond that pays no annual interest but is sold at a discount below its par value is called what?

Name: A bond that pays no annual interest but is sold at a discount below its par value is called what?
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Question

Quizplus · Accepted Answer

A zero coupon bond is a bond that pays no annual interest but is sold at a discount below its par value. The discount represents the interest that would have been paid over the life of the bond. The full face value of the bond is paid at maturity.

A Bond That Pays No Annual Interest but Is Sold