Which of the Following Bonds Makes No Interest Payments

question 18

Multiple Choice

Which of the following bonds makes no interest payments?

• A) A bond whose coupon rate is equal to the market interest rates
• B) A bond whose coupon rates are greater than market interest rates
• C) A bond whose coupon rates are less than the market interest rates
• D) Zero coupon bond

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Definitions:

Malfeasance

The performance of an act that is unlawful or wrongful by a public official or other person in power.

Res Ipsa Loquitur

A legal principle which means "the thing speaks for itself," used in tort law to suggest that the defendant's negligence is the obvious cause of the plaintiff's injury.

Licensed Practitioner

A professional who has received a license to practice their profession legally after meeting the required standards of education, training, and experience.

Preexisting Condition

A medical condition that existed before the start of an insurance coverage policy, often affecting coverage terms.