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

Question

Aleks04 [339]

3 years ago

6

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.

Business

1 answer:

nadezda [96] · Answer 1 · 2022-07-10T19:20:38+03:00

Answer:

zero-coupon

Explanation:

According to my experience with different investment assets, I can say that based on the information provided within the question he purchased a zero-coupon bond. This is an bond asset that the individual may redeem at the time of maturity for the same price that he purchased the bond. Just like mentioned in the question.

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