Home › BBA Finance › Financial Management › Bonds and Bond Valuation › Corporate bonds that make no regular coupon paym…
Corporate bonds that make no regular coupon payments are:
AZero-custody bonds
BZero-coupon bonds
CZero-capital bonds
DZero-currency bonds
Answer & Solution
Correct answer: B. Zero-coupon bonds
1. They are issued at a deep discount.
2. Full par value is repaid at maturity.
3. They are zero-coupon bonds.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
Related questions
The yield column of a bond table shows the return an investor gets if the bond is:Coupon rates are always expressed in which terms, even when payments are more frequent?If a 1,000 par bond pays 6% annually in two equal instalments, each payment is:A bond paying 5% on a par value of 1,000 makes an annual coupon payment of:A bond paying 8% on a par value of 1,000 makes an annual coupon payment of:Because bonds are fixed-income investments, they are exposed to risks that can hurt their:Investment-grade bonds are especially popular because many commercial banks and pension fuBonds in the top rating bands are described as: