(I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment.
(II) A coupon bond pays the lender a fixed interest payment every year until the maturity date,when a specified final amount (face or par value) is repaid.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.
Correct Answer:
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