Question: How are investors in zero - coupon bonds compensated for making such an investment? The face value of these bonds is less than the value
How are investors in zerocoupon bonds compensated for making such an investment?
The face value of these bonds is less than the value of the bond when the bond matures.
Such bonds are purchased at their face value and sold at a premium at a later date.
The bond makes regular interest payments.
Such bonds are purchased at a discount to their face value.
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