A zero coupon bond is a bond that:

Name: A zero coupon bond is a bond that:
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

A zero coupon bond is a bond that does not pay periodic interest, but instead is sold at a discount to its face value and pays out the full face value at maturity. Therefore, choice B, "pays no periodic interest," is the correct answer. Choices A, C, and D are all incorrect as zero coupon bonds can still have risk, can still appreciate in price, and are redeemed at maturity.

A Zero Coupon Bond Is a Bond That