A(n) ________ is issued with no or very low coupon and sells significantly below its par value.

Question

Quizplus · Accepted Answer

A zero or low coupon bond is issued with no or very low coupon rate, which means it pays little or no interest to the bondholders. Such bonds are sold at a discounted price, significantly below their par value, and the investors earn their return mainly from the increase in the bond's price as it nears maturity.

A(n) ________ Is Issued with No or Very Low Coupon