Which of the following statements is FALSE?
A)The bond certificate typically specifies that the coupons will be paid periodically until the maturity date of the bond.
B)The bond certificate indicates the amounts and dates of all payments to be made.
C)The only cash payments the investor will receive from a zero-coupon bond are the interest payments that are paid up until the maturity date.
D)Usually the face value of a bond is repaid at maturity.

Question

Quizplus · Accepted Answer

Zero-coupon bonds do not have periodic interest payments, so the statement that the investor will receive interest payments up until maturity is false. They are sold at a discount to their face value and the investor receives the face value at maturity.

Which of the Following Statements Is FALSE