A zero coupon bond pays no coupon payments at all. Rather, it simply has a par value

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A zero coupon bond pays no coupon payments at all. Rather, it simply has a par value and maturity date. This type of bond always sells at a discount. Can you explain why that is the case?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Sep 07, 2018 03:09 AM

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A zero coupon bond pays no coupon payments at all. Rather, it simply has a par value

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Zero coupon bonds are the bonds which does not car ry any coupon ... View the full answer

Corporate Finance

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