Bonds Valuation: Key Characteristics Bonds can be Select correct one (floating, zero, fixed)rate bonds with a constant coupon rate over the life of the bond, or they can be Select correct one (floating, zero, fixed) rate bonds with a coupon rate that varies over time depending on the level of interest rates. Select correct one (Annual coupon, zero coupon, Fixed coupon) bonds pay no annual interest but are sold at a Select correct one (premium above, price at, discount below) par, thus compensating investors in the form of capital appreciation. An original issue discount (OID) bond is any bond originally offered at a price Select correct one (above its, below its, equal to) par value