Which one of the following is issued at a discount to its redemption value and pays its holder no interest during its life?
A: A deep discount bond
B: A long-term bond issued by the government
C: An unsecured loan note
D: A zero coupon bond
A: A deep discount bond
B: A long-term bond issued by the government
C: An unsecured loan note
D: A zero coupon bond
举一反三
- Which of the following statements about accounting for long-term debt is least accurate（） A: For a bond issued at par, interest expense = coupon rate x face value. B: For a discount coupon bond, cash flow from operations will decrease by the amount of the periodic coupon payment. C: A bond issued at a discount results in lower cash flow from operations and higher cash flow from financing than a bond issued at a premium.
- If a $5,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity is _________
- When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase. A: a capital gain B: a capital loss C: market value D: interest
- A bond denominated in euros and issued in a country that uses the euro as its currency is an example of a Eurobond.
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to