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14 March, 20:19

Which one of the following terms applies to a bond that initially sells at a deep discount and only makes one payment to bondholders? CallableIncomeZero couponConvertibleTax-free

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  1. 15 March, 00:06
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    The correct answer is zero-coupon

    Explanation:

    A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

    The bond that is describe in the statement meet this criteria, initially sells at a deep discount and only makes one payment to bondholders, so is a zero coupon bond.
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