Which of the Following Is Not a Characteristic of a Zero-Coupon

question 21

Multiple Choice

Which of the following is not a characteristic of a zero-coupon bond?

• A)It doesn't pay interest.
• B)It is sold at a deep discount from face value.
• C)The annual increase in the bond's price is not taxable as ordinary income.
• D)It provides a means for corporations to take annual deductions without current cash outflow.

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