Ask Question
17 May, 19:33

A zero coupon bond is a bond that pays no interest and is offered (and initially sells) at par. These bonds provide compensation to investors in the form of capital appreciation.

A. True

B. False

+3
Answers (1)
  1. 17 May, 19:54
    0
    B. False

    Explanation:

    Zero coupon bonds which are also referred to as deep discount bonds are offered to investors at deep discounted price and redeemed at par value. Such bonds do not pay any interest.

    The return an investor earns on such bonds represents the difference between the purchase price and par value, since such bonds are redeemable at par.

    Hence these bonds are issued at a discounted price and ain't sold at par.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A zero coupon bond is a bond that pays no interest and is offered (and initially sells) at par. These bonds provide compensation to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers