A Bond That Only Pays a Principal Payment at Maturity

question 72

Multiple Choice

A bond that only pays a principal payment at maturity date is known as a(n) :

• A) Blank bond.
• B) Maturity bond.
• C) Interest free bond.
• D) Mini-coupon bond.
• E) Zero coupon bond.

Understand the relationship between a function and its reciprocal.

Understand the components and purposes of different types of business plans (operational, strategic, budgeting, and forecasting).

Distinguish between the roles of budgeting and forecasting in business planning.

Recognize the audiences for business plans and their expectations.

---

Definitions:

Perpetual Inventory System

A method that continuously updates inventory records to reflect sales, returns, and additions in real time.

Perpetual Inventory System

An inventory management system where stock levels are updated in real-time following each purchase or sale.

Inventory Account

An account used to record the value of inventory held by a business, including goods ready for sale and those in the process of being produced.

Subsidiary Inventory Ledger

The subsidiary ledger containing individual accounts for items of inventory.