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