The difference between the price and the par value of a zero-coupon bond represe
ID: 2722304 • Letter: T
Question
The difference between the price and the par value of a zero-coupon bond represents ________.taxes payable by the bond buyer
the accumulated principal over the life of the bond
the bond premium
the accumulated interest over the life of the bond
The difference between the price and the par value of a zero-coupon bond represents ________.
taxes payable by the bond buyer
the accumulated principal over the life of the bond
the bond premium
the accumulated interest over the life of the bond
The difference between the price and the par value of a zero-coupon bond represents ________.
taxes payable by the bond buyer
the accumulated principal over the life of the bond
the bond premium
the accumulated interest over the life of the bond
Explanation / Answer
the accumulated interest over the life of the bond
because it does not pay interest . it only recevies face value of bond on maturity. ie accumulation of inteterest
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