Bonds that does not pay any interest rate are considered as
A. interest free bond
B. zero coupon bond
C. price less coupon bond
D. useless price bonds
Answer: Option B
Solution (By Examveda Team)
Bonds that does not pay any interest rate are considered as zero coupon bond. A zero-coupon bond is a debt security instrument that does not pay interest. Zero-coupon bonds trade at deep discounts, offering full face value (par) profits at maturity. The difference between the purchase price of a zero-coupon bond and the par value, indicates the investor's return.This Question Belongs to Management >> International Finance And Treasury
Join The Discussion