Deep Discount Bonds Are Semi-Annual Fixed-Rate Coupon Bonds That Sell

question 48

True/False

Deep discount bonds are semi-annual fixed-rate coupon bonds that sell at a market price that is less than par value.

---

Definitions:

Assignment

The act of passing on rights, property, or duties from one individual or group to another.

Creditor Beneficiary

A third party who benefits from a contract made between two other parties because one of the primary parties owes a debt to the beneficiary.

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations.

Promisor

The person or party who makes a promise or agrees to perform an action or fulfill an obligation under a contract.