Which of the following statements regarding bonds and their terms is FALSE?
A) The bond certificate typically specifies that the coupons will be paid periodically until the maturity date of the bond.
B) The bond certificate indicates the amounts and dates of all payments to be made.
C) The only cash payments the investor will receive from a zero-coupon bond are the interest payments that are paid up until the maturity date.
D) The face value of a bond is repaid at maturity.

Question

Quizplus · Accepted Answer

Zero-coupon bonds do not pay periodic interest payments, so this statement is false. The investor only receives the full face value of the bond at maturity. The other statements are true.

Which of the Following Statements Regarding Bonds and Their Terms