Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

In zero coupon bonds; 1) are issued at zero premium and zero discount 2) have zero face value 3) are always issued at discount?

user-image
Question added by Shaikh Muhammad Yousuf , Manager Accounts , Al Wahdania Group of Companies
Date Posted: 2016/02/06
Naveen Vadlagatta
by Naveen Vadlagatta , Investment Analyst , Wipro limited

issued at discount and redeemed at par at maturity time

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

3. are always issued at a discount. 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 rendered for its full face value.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.