Which of the Following Statements Is True of Zero Coupon

question 30

Multiple Choice

Which of the following statements is true of zero coupon bonds?

• A) Zero coupon bonds have no coupon payments over its life and only offer a single payment at maturity.
• B) Zero coupon bonds sell well below their face value (at a deep discount) because they offer no coupons.
• C) The most frequent and regular issuer of zero coupon securities is the U.S. Treasury Department.
• D) All of the above are true.

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