{"id":59378,"date":"2024-04-16T01:36:08","date_gmt":"2024-04-16T01:36:08","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59378"},"modified":"2024-04-16T01:36:08","modified_gmt":"2024-04-16T01:36:08","slug":"type-of-bonds-that-pays-no-coupon-payment-but-provides-little-appreciation-are-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/type-of-bonds-that-pays-no-coupon-payment-but-provides-little-appreciation-are-classified-as\/","title":{"rendered":"Type of bonds that pays no coupon payment but provides little appreciation are classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;depreciated bond&#8221; option2=&#8221;interest bond&#8221; option3=&#8221;zero coupon bond&#8221; option4=&#8221;appreciation bond&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. zero coupon bond.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>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&#8217;s creditworthiness or a rise in interest rates.<\/li>\n<li>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.<\/li>\n<li>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&#8217;s creditworthiness or a decline in interest rates.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;depreciated bond&#8221; option2=&#8221;interest bond&#8221; option3=&#8221;zero coupon bond&#8221; option4=&#8221;appreciation bond&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59378","post","type-post","status-publish","format-standard","hentry","category-financial-management","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>Type of bonds that pays no coupon payment but provides little appreciation are classified as<\/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\/type-of-bonds-that-pays-no-coupon-payment-but-provides-little-appreciation-are-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Type of bonds that pays no coupon payment but provides little appreciation are classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;depreciated bond&#8221; 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