Zero coupon bonds sell well above their par value because they offer no coupons.

Name: Zero coupon bonds sell well above their par value because they offer no coupons.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Zero coupon bonds are sold at a discount to their par value because they do not offer any interest payments (coupons) to the bondholder. The discount represents the time value of money and the compensation that bondholders are willing to forego in exchange for a lump sum payment at maturity.

Zero Coupon Bonds Sell Well Above Their Par Value Because