linaoficcial5310 linaoficcial5310

11-11-2019
Business

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Which one of the following terms applies to a bond that initially sells at a deep discount and only makes one payment to bondholders?CallableIncomeZero couponConvertibleTax-free

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cecylya cecylya

12-11-2019

Answer:

The correct answer is zero-coupon

Explanation:

A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

The bond that is describe in the statement meet this criteria, initially sells at a deep discount and only makes one payment to bondholders, so is a zero coupon bond.

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