A Bond That Only Pays a Principal Payment at Maturity

question 116

Multiple Choice

A bond that only pays a principal payment at maturity date is known as a(n)

• A) blank bond.
• B) maturity bond.
• C) interest free bond.
• D) mini-coupon bond.
• E) zero coupon bond.

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Definitions:

Independent Variable

A variable in an experiment or analysis that is manipulated or categorized to observe its effect on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.

Hydroxide ions

Negatively charged ions made up of one oxygen and one hydrogen atom, symbolized as OH-.

Alkaline Solution

A solution with a pH value greater than 7, indicating it has fewer hydrogen ions than pure water and is commonly referred to as basic.