- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 1. Basic Features of a Fixed-Income Security
CFA Practice Question
Zero-coupon bonds are bonds that ______
A. are not contracted to make periodic coupon payments.
B. have no coupon payment for a deferred period.
C. are contracted to make periodic coupon payments.
Explanation: Zero-coupon bonds are issued at a discount to par value and redeemed at par. They are also known as pure discount bonds.
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