A Bond That Only Pays a Principal Payment at Maturity

question 22

Multiple Choice

A bond that only pays a principal payment at maturity date is known as a:

• A) Blank bond.
• B) Maturity bond.
• C) Interest free bond.
• D) Mini-coupon bond.
• E) Zero coupon bond.

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Definitions:

Integer Value

An integer value refers to a numerical value without a fractional component, used in programming to perform mathematical operations.

Mathematical Function

A relation or expression involving one or more variables that produces a unique output for each set of inputs.

Single Constants

Literal fixed values represented in code, typically numerical or character constants not expected to change.