Because of Higher Interest Rates, Zero-Coupon Bonds Are Sold at a Premium

question 66

True/False

Because of higher interest rates, zero-coupon bonds are sold at a premium price above the face value that will be paid at maturity.

---

Definitions:

Venetian Glass

A type of glass made in Venice, Italy, renowned for its craftsmanship, color, and intricate designs.

Service Tax

A tax levied by the government on service providers on certain service transactions, but is actually borne by the customers.

Quotas

Limits set by governments on the amount of a specific good that can be imported or exported during a given time frame, often used as a way to regulate international trade.

Domestic Industries

Industries that produce goods and services within a country's borders for local consumption.