A bond that promises to pay the owner a single payment denominated in euros or pounds is known as a ________ bond.

Name: A bond that promises to pay the owner a single payment denominated in euros or pounds is known as a ________ bond.
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Question

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A pure discount bond promises to pay a single payment (the face value) at maturity and does not pay periodic interest payments. The fact that the payment is denominated in euros or pounds simply indicates the currency in which the payment will be made.

A Bond That Promises to Pay the Owner a Single