A pure discount bond:
A) has no face value.
B) pays interest annually.
C) pays interest semiannually.
D) pays no coupon.

Name: A pure discount bond: A) has no face value. B) pays interest annually. C) pays interest semiannually. D) pays no coupon.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

A pure discount bond does not pay periodic interest (coupon) payments. Instead, it is sold at a discount to its face value and pays its face value at maturity.

A Pure Discount Bond