Which of the following bonds makes no interest payments?
A) A bond whose coupon rate is equal to the market interest rates
B) A bond whose coupon rates are greater than market interest rates
C) A bond whose coupon rates are less than the market interest rates
D) Zero coupon bond

Question

Quizplus · Accepted Answer

A zero coupon bond does not make any interest payments, as the investor purchases the bond at a discount and receives the full face value at maturity.

Which of the Following Bonds Makes No Interest Payments