Zero-Coupon Bonds

question 122

Multiple Choice

Zero-coupon bonds:

• A) Offer a return in the form of a deep discount off the face value.
• B) Result in zero interest expense for the issuer.
• C) Result in zero interest revenue for the investor.
• D) Are reported as shareholders' equity by the issuer.

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Definitions:

Rewards

Benefits, both intrinsic and extrinsic, given to individuals or groups for achieving specific goals or performing at a high level.

Self-actualization

A psychological state or level of growth where an individual realizes and fulfills their own potential and capabilities.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model in the shape of a pyramid, starting from basic physiological needs to self-actualization at the top.

McClelland

David McClelland, a psychologist known for his work on motivation and the theory of Needs, including Achievement, Affiliation, and Power.