Which Statement Is True Regarding Zero Coupon Bonds

question 74

Multiple Choice

Which statement is true regarding zero coupon bonds?

• A)They provide cash interest payments during their life.
• B)They are sold for more than the face or maturity value.
• C)The investor determines their market value at the issuance date by calculating the present value of their maturity value,using the market rate of interest for bonds having similar terms and risks.
• D)They are also called callable debentures.
• E)They are also called junk bonds.

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