A Zero Coupon Bond Makes No Interest Payments

question 13

Essay

A zero coupon bond makes no interest payments. How then can it be a bond, which is simply a loan? What are the peculiar tax implications of zeros?

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Definitions:

Death Penalty

A governmental sanction where a person is put to death by the state as punishment for a crime.

Deterrent

A factor, condition, or threat that discourages individuals from engaging in particular behaviors, often used in the context of crime prevention.

Sociologists

are social scientists who study human societies, including their structures, functions, cultural norms, and development.

Psychiatrists

Medical doctors specialized in the diagnosis, treatment, and prevention of mental illnesses and emotional disorders.