Attraction of a Zero-Coupon Bond Assignment
February 18th, 2020
For the investor, the attraction of a zero-coupon bond is:
a. that payments are tied to some measure of interest in the market such as book
b. that these bonds are issued at prices that are considerably low, so that the bondholder can obtain a considerably high yield at the maturity of the bond
c. that the bondholder can select to exchange these bonds for a specific amount of common stock in the company.
d. has a higher current yield than a floating-rate bond
e. that interest earned on this type of bond is always exempt from contributions