The Bond That You Own Does Not Pay Any Interest

question 61

Multiple Choice

The bond that you own does not pay any interest.Instead,it is sold at a "discount" from its maturity value.This is a ________ bond.

• A)no interest
• B)face discount
• C)growth
• D)zero coupon
• E)none of the above

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Definitions:

Activation Energy

Energy that must be added to molecules to initiate a reaction.

Chemical Reactions

Processes that involve the transformation of substances by breaking and forming chemical bonds leading to new substances.

Temperature

A physical quantity expressing the subjective perceptions of hot and cold, measured by a thermometer in units of Celsius, Fahrenheit, or Kelvin.

Concentration

The quantity of a substance within a certain volume of solution or mixture, or the process of increasing the amount of a substance in a solution.