A Pure Discount Bond

question 17

Multiple Choice

A pure discount bond:

• A) has no face value.
• B) pays interest annually.
• C) pays interest semiannually.
• D) pays no coupon.

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Definitions:

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another with the understanding that the property will be returned.

Sale

A contract in which ownership of goods is transferred by the seller to the buyer for a price.

Title

Legal ownership of property, especially real estate or automobiles.

Oral Contracts

Agreements that are made verbally and are legally binding, though harder to prove than written contracts.