Bonds That Sell for Much Less Than Face Value and Pay

question 26

Multiple Choice

Bonds that sell for much less than face value and pay no coupon are called:

• A)original issue discount bonds.
• B)deep discount bonds.
• C)pure discount bonds.
• D)zero coupon bonds.
• E)All of the above.

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Definitions:

Major

The term usually refers to the most abundant or significant product, component, or outcome in a chemical reaction or process.

Structure

The arrangement or organization of something, particularly atoms in molecules or compounds in chemistry.

Reaction

The process by which one or more substances are transformed into different substances with distinct physical and chemical properties.

Organic Product(s)

Chemical compounds consisting of carbon that are produced as the outcomes of organic reactions.