Which of the Following Bonds Makes No Interest Payments

question 101

Multiple Choice

Which of the following bonds makes no interest payments?

• A) a bond whose coupon rate is equal to the market interest rates
• B) a bond whose coupon rates are greater than market interest rates
• C) a bond whose coupon rates are less than the market interest rates
• D) zero-coupon bond

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Definitions:

Consideration

In contract law, consideration refers to something of value exchanged between parties, forming the basis for a contract.

Promissory Estoppel

A rule in law that prohibits an individual from retracting a pledge given to another if the latter has justifiably depended on this assurance to their harm.

Quasi Estoppel

A legal doctrine preventing a party from asserting rights or facts that contradict their past actions or statements.

Bilateral Contract

A type of contract involving mutual obligations whereby each party promises to perform an act in exchange for the other party's act.