{"id":33691,"date":"2024-04-15T09:20:21","date_gmt":"2024-04-15T09:20:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33691"},"modified":"2024-04-15T09:20:21","modified_gmt":"2024-04-15T09:20:21","slug":"which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/","title":{"rendered":"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 3&#8243; option2=&#8221;1 and 2&#8243; option3=&#8221;2 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. 1, 2 and 3.<\/p>\n<p>Zero-coupon bonds are a type of bond that does not pay any interest during the life of the bond. Instead, the investor purchases the bond at a deep discount from its face value, and receives the face value of the bond at maturity. This means that the investor&#8217;s return on investment comes solely from the appreciation of the bond&#8217;s price over time.<\/p>\n<p>Zero-coupon bonds are often used as a way to hedge against inflation, as they provide a fixed return that is not eroded by inflation. They are also popular with investors who are looking for a way to generate income in a tax-deferred account, such as a 401(k) or IRA.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ol>\n<li>They are called deep discount bonds.<\/li>\n<\/ol>\n<p>Zero-coupon bonds are called deep discount bonds because they are purchased at a deep discount from their face value. For example, a zero-coupon bond with a face value of $1,000 that is purchased for $500 is said to be trading at a 50% discount.<\/p>\n<ol>\n<li>The price paid by investors is less than their face value.<\/li>\n<\/ol>\n<p>As mentioned above, zero-coupon bonds are purchased at a deep discount from their face value. This is because the investor is not receiving any interest payments during the life of the bond. The investor&#8217;s return on investment comes solely from the appreciation of the bond&#8217;s price over time.<\/p>\n<ol>\n<li>The bonds are redeemed at par.<\/li>\n<\/ol>\n<p>At maturity, the bond issuer will redeem the bond at its face value. For example, a zero-coupon bond with a face value of $1,000 that is purchased for $500 will be redeemed for $1,000 at maturity.<\/p>\n<p>I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 3&#8243; option2=&#8221;1 and 2&#8243; option3=&#8221;2 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"class_list":["post-33691","post","type-post","status-publish","format-standard","hentry","category-business-finance","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;1 and 3&#8243; option2=&#8221;1 and 2&#8243; option3=&#8221;2 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T09:20:21+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par.","og_description":"[amp_mcq option1=&#8221;1 and 3&#8243; option2=&#8221;1 and 2&#8243; option3=&#8221;2 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T09:20:21+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/","name":"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par.","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T09:20:21+00:00","dateModified":"2024-04-15T09:20:21+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-the-main-features-of-zero-coupon-bonds-1-they-are-called-deep-discount-bonds-2-the-price-paid-by-investors-is-less-than-their-face-value-3-the-bonds-are-redeemed-at-pa\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Commerce","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/commerce\/"},{"@type":"ListItem","position":4,"name":"Business finance","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/commerce\/business-finance\/"},{"@type":"ListItem","position":5,"name":"Which of the following are the main features of Zero Coupon Bonds? 1. They are called deep discount bonds. 2. The price paid by investors is less than their face value. 3. The bonds are redeemed at par."}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/33691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=33691"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/33691\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=33691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=33691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=33691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}