Which of the following statements about zero-coupon bonds are TRUE?

Which of the following statements about zero-coupon bonds are TRUE?



Zero-coupon bonds are sold at a deep discount from face value.

Zero-coupon bonds pay periodic interest payments.

The owner of a zero-coupon bond receives his return only at maturity.


A) I and III.

B) I and II.

C) II and III.

D) I, II and III.



Answer: A) I and III.


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