Zero Coupon Bonds are that Variety of loans

Practice MCQ for SSC, UPSC, RRB Exams

A. Which fail to yield an Income for the creditors A.
B. Which are issued at a discount and redeemed at par B.
C. on which the entire interest income is paid at the time of purchase C.
D. the market price of which may fall suddenly and heavily D.

Correct Answer: B সঠিক উত্তর: B

Explanation ব্যাখ্যা

Zero coupon bonds are a type of bond that do not pay interest during their life. Instead, they are issued at a discount to their face value and redeemed at par at maturity. This means that the investor's profit comes from the difference between the purchase price and the face value

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