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15 January, 15:06

Zero-coupon bonds: Offer a return in the form of a deep discount off the face value. Are reported as shareholders' equity by the issuer. Result in zero interest revenue for the investor. Result in zero interest expense for the issuer.

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  1. 15 January, 15:09
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    Offer a return in form the form of a deep discount off the face value

    Explanation:

    The term deep discount bonds in financial accounting refers to indentures that are sold at a price reasonably lower than face value, normally 20% or more than that. Deep discount bonds also has a zero coupon bonds, which do not pay a rate of interest to the holder of the bond. They are usually issued for a period of five (5) years on more than that.
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