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

question 11

Multiple Choice

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

• A) Such bonds are purchased at their face value and sold at a premium on a later date.
• B) Such bonds make regular interest payments.
• C) Such bonds are purchased at a discount, below their face value.
• D) Such bonds have a lower face value as compared to other bonds of similar term.

---

Definitions:

Trivial Details

Minor or insignificant facts or aspects that are often deemed not important.

Retail Store

A physical location where consumers can purchase goods or services directly from a business.

Smoke Screen

A deliberate action or statement designed to obscure, confuse, or mislead.

Salesperson

a professional involved in the direct selling and promotion of products or services to potential customers, often requiring skills in communication, persuasion, and product knowledge.