Type of bond whose present value is lesser than that of its face value is classified as

A. discount bond

B. premium bond

C. coupon bond

D. interest bonds

Answer: Option A

Solution(By Examveda Team)

Type of bond whose present value is lesser than that of its face value is classified as discount bond. A discount bond is a bond that is issued for less than its par or face value. Discount bonds may also be a bond currently trading for less than its face value in the secondary market.