Which One of the Following Bonds Pays Interest Only at Maturity

question 75

Multiple Choice

Which one of the following bonds pays interest only at maturity?

• A)registered bond
• B)registered coupon bond
• C)bearer bond
• D)zero-coupon bond
• E)junk bond

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Definitions:

Temporary Differences

Differences between the accounting value and tax value of assets and liabilities, resulting in deferred tax assets or liabilities.

Deferred Income Taxes

Taxes that are assessed or paid on income that is recognized in one period for financial reporting purposes but in a different period for tax purposes.

Fair Value Increments

Increases in the value of an asset or security that result from a reassessment of its fair value, often reflected in financial statements to show current market conditions.

Deferred Tax Liability

A tax obligation that a company owes and will pay in the future, resulting from timing differences between the recognition of income and expenses for financial reporting and tax purposes.