Question: What is the difference between a pure discount bond and an ordinary bond that sells at a discount? A pure discount bond is riskier than
What is the difference between a pure discount bond and an ordinary bond that sells at a discount?
A pure discount bond is riskier than an ordinary bond that sells at a discount.
A pure discount bond has a longer maturity than an ordinary bond that sells at a discount.
A pure discount bond has no coupon payments, whilst an ordinary bond that sells at a discount has coupon payments below the market's required return.
A pure discount bond has a higher face value than an ordinary bond that sells at a discount.
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