Some corporate bonds make no periodic interest payments at all. Those are:
AZero-tax bonds
BZero-coupon bonds
CZero-risk bonds
DZero-fee bonds
Answer & Solution
Correct answer: B. Zero-coupon bonds
1. The holder receives nothing until maturity.
2. The return comes from buying well below face value.
3. They are zero-coupon bonds.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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