Zero Coupon Bonds Are Bonds That Are Issued

Multiple Choice

Zero coupon bonds are bonds that are issued:

A) With a zero effective interest rate.
B) At a rate that provides a large discount at issuance.
C) At a rate that has zero difference between the coupon rate and the market rate of interest.
D) As bonds that will have zero amortization recorded over the life of the bonD.Zero coupon bonds are issued at a large discount because they do not pay cash interest during the life of the bond.At maturity, the bonds will have earned the market rate of interest at the issue date.