Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A)Zero-coupon corporate bonds are bonds without any intervening cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value.
• B)Zero-coupon corporate bonds are bonds with semi-annual cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value.
• C)Zero-coupon corporate bonds are bonds without any intervening cash flows between issue and maturity and thus these bonds typically sell at a small discount from face value.
• D)Zero-coupon corporate bonds are bonds with annual cash flows between issue and maturity and thus these bonds typically sell at a large discount from face value.

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Definitions:

Maturity

A state of full development.

Contrast Medium

A material employed in medical imaging to enhance the clarity of internal body structures.

Allergy

An altered or acquired state of sensitivity; abnormal reaction of the body to substances normally harmless.

Iodine

A chemical element necessary for thyroid gland function, which helps regulate metabolism.