A debt security with just one payment at a future date is referred to as a
A)coupon bond.
B)fixed-payment security.
C)discount bond.
D)perpetuity.

Question

Quizplus · Accepted Answer

A debt security with just one payment at a future date is called a discount bond. It is issued at a discount to its face value and does not pay any periodic interest or coupon payments. The return to the investor comes in the form of the difference between the discounted purchase price and the face value received at maturity. Fixed-payment securities, coupon bonds, and perpetuities all have regular coupon or interest payments.

A Debt Security with Just One Payment at a Future