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ololo11 [35]
3 years ago
14

John Peterson purchased a bond at a price far below its face value; it that makes no interest payments and will be redeemed at i

ts face value at maturity. In all likelihood, he purchased a(n) __________ bond.
a. zero-coupon
b. convertible
c. indenture
d. registered
History
2 answers:
KiRa [710]3 years ago
6 0

John Peterson purchased a bond at a price far below its face value; it that makes no interest payments and will be redeemed at its face value at maturity. In all likelihood, he purchased a zero.coupon bond. Option A is correct.

A zero-coupon bond is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Darya [45]3 years ago
3 0
In all likelihood, he purchased a "<span>a. zero-coupon" since these are only beneficial to people looking to have very little flexibility in terms of return when it comes to the future of their investment. </span>
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