Question

The bond that you own does not pay any interest.​ Instead, it is sold at a​ "discount" from its maturity value. This is a​ ________ bond.

Answer 1

The correct anwer is zero coupon.

Step-by-step explanation:

A zero coupon bond is one in which there is no periodic payment of interest during the life of the bond and is sold at a discount well below its nominal value. The holder receives a return that is generated through the gradual appreciation of the security and it is redeemed at a predefined date in the future.