Type of bonds that pays no coupon payment but provides little appreciation are classified as

The correct answer is C. zero coupon bond.

A zero-coupon bond is a bond that does not pay any interest during the life of the bond. Instead, the bond is sold at a deep discount from its face value, and the investor earns a profit when the bond matures and is redeemed at its face value.

Zero-coupon bonds are often used as a way to save for retirement or other long-term goals. They can also be used as a way to hedge against inflation.

Here is a brief explanation of each option:

• A depreciated bond is a bond that has lost value since it was issued. This can happen for a number of reasons, such as a decline in the issuer’s creditworthiness or a rise in interest rates.
• An interest bond is a bond that pays interest to the investor on a regular basis. The interest rate is usually set when the bond is issued and remains the same for the life of the bond.
• An appreciation bond is a bond that is expected to increase in value over time. This can happen for a number of reasons, such as a rise in the issuer’s creditworthiness or a decline in interest rates.