How Are Investors in Zero-Coupon Bonds Compensated for Making Such

question 17

Multiple Choice

How are investors in zero-coupon bonds compensated for making such an investment?

• A)Such bonds are purchased at a discount to their face value.
• B)Such bonds are purchased at their face value and sold at a premium at a later date.
• C)The bond makes regular interest payments.
• D)The face value of these bonds is less than the value of the bond when the bond matures.

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Definitions:

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