Nate purchased interest-bearing security last year, planning to hold it until maturity. He received interest payments, and,
Fantastic news! We've Found the answer you've been seeking!
Question:
Nate purchased interest-bearing security last year, planning to hold it until maturity. He received interest payments, and, to his surprise, a sizable amount of the principal was paid back in the first year. This happened again in year 2. What type of security did Nate purchase?
a. A corporate bond
b. An asset-backed security
c. A high yield junk bond
d. A zero-coupon bond
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
Posted Date: