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In Terms of Discount Securities Nominate the Incorrect Statement

Question 20

Multiple Choice

In terms of discount securities nominate the incorrect statement:


A) Instruments such as BABs are discount securities in that their selling prices are less than (at a discount to) their face values.
B) The face value of the security is sold at a discount so that the amount paid on maturity is equal to the face value of the security.
C) Pays a coupon or interest payment monthly until maturity.
D) All of the above.

Correct Answer:

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