A discount bond ( ).
A: is also called a zero-coupon bond.
B: is bought at a price below its face value
C: its face value is repaid at the maturity date.
D: is also called simple payment bond.
A: is also called a zero-coupon bond.
B: is bought at a price below its face value
C: its face value is repaid at the maturity date.
D: is also called simple payment bond.
举一反三
- Which of the following statements is FALSE? A: The amount of each coupon payment is determined by the coupon rate of the bond. B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. C: The simplest type of bond is a zero-coupon bond. D: Treasury bills are U.S. government bonds with a maturity of up to one year.
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- If a $5,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity is _________
- If you have a bond that pays a lump sum at the time of maturity, it is A: called a zero-coupon bond. B: worth more than a bond with coupon payments. C: riskier than a bond with coupon payments. D: a safer investment than a perpetuity.
- As the coupon rate of a bond increases, the bond's:() A: face value increases B: current price decreases C: interest payments increase D: maturity date is extended