Question: Zero coupon bonds: are valued using simple interest. are issued only by the U.S. Treasury. create a tax deduction for the issuer only at maturity.

Zero coupon bonds:

are valued using simple interest.

are issued only by the U.S. Treasury.

create a tax deduction for the issuer only at maturity.

are issued at a premium.

create annual taxable income to individual bondholders.

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