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.This Question Belongs to Management >> International Finance And Treasury
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