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:

Entropy

A measure of disorder or randomness in a system, often associated with the second law of thermodynamics, indicating the degree of dispersion of energy.

Hypertrophy

The enlargement of an organ or tissue from the increase in size of its cells, often related to physical exercise.

Flexible Line

This suggests an approach or method that is adaptable and can be adjusted according to different situations or requirements.

Lines of Resistance

In nursing theory, defensive mechanisms or strategies used by individuals or systems to protect against stressors or threats to integrity.