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.