Which of the Following Is NOT True Regarding Zero-Coupon Bonds

question 77

Multiple Choice

Which of the following is NOT true regarding zero-coupon bonds?

• A)They are issued at a deep discount from par value.
• B)Investors are taxed annually on the amount of interest earned, even though they will not receive the interest until maturity.
• C)The issuing firm is permitted to deduct the amortized discount as interest expense, even though it does not pay interest.
• D)Zero-coupon bonds pay dividends instead of coupons.
• E)All of these are correct.

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Definitions:

Postsynaptic Cell

A neuron or muscle cell that receives signals from a presynaptic neuron at a synapse.

Neuromodulator

Substance that influences the sensitivity of neurons to neurotransmitters but neither strongly stimulates nor strongly inhibits neurons by itself.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron, muscle cell, or gland cell.

Neurons Sensitivity

The capacity of neurons to respond to stimuli or changes in the environment, affecting how signals are transmitted through the nervous system.