A Bond That Pays No Separate Interest Payments Is Called

question 19

Multiple Choice

A bond that pays no separate interest payments is called a(n) :

• A) Premium bond.
• B) Coupon bond.
• C) Junk bond.
• D) Zero-coupon bond.
• E) Investment grade bond.

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Definitions:

Lowest Opportunity Cost

The situation where choosing one option incurs the smallest possible loss of potential benefits from other alternatives, a key concept in comparative advantage and economic decision-making.

Fewest Resources

The condition of having the minimal amount of resources, including labor, capital, and natural resources, required for production.

Opportunity Cost

The missed opportunity to benefit from other choices when selecting a particular option.

Pages

Typically refers to sheets of paper bound together within a book, or the digital equivalent in documents, used to display printed or written material.