Question: How is an original issue discount bond ( OID ) different from a zero coupon bond? Multiple choice question. There is no difference. An OID
How is an original issue discount bond OID different from a zero coupon bond?
Multiple choice question.
There is no difference.
An OID has a very low coupon rate, while a zero coupon bond pays no coupon.
The coupon rate of an OID changes annually.
An OID has a very high coupon rate, while a zero coupon bond pays no coupon.
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