Define a zero coupon bond-02144
This subjective question is related to the book/course
vu mgt611 Business & Labor Law.
It can also be found in
vu mgt611 Mid Term Solved Past Paper No. 1.
Question 1: Define a zero coupon bond?
Answer:
A zero coupon bond has a specific maturity date when it returns the bond principal, but it pays no periodic income. In other words, the bond has only a single cash inflow the par value returned at maturity.
