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.
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.
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.
- If a bond pays the same coupon payment forever without a maturity, it is known as a A: perpetuity. B: forever bond. C: discount bond. D: consolidated bond.
- A coupon bond pays the owner of the bond _________
- A dual-currency bond pays coupon interest in a currency other than the home currency of the issuer.
- 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