Under what situation can a zero-coupon bond be selling at par to its face value?

What will be an ideal response?

Answer: Unlike a coupon bond, a zero-coupon bond does not have a periodic cash flow with one lump-sum payment of the face value at its maturity. Consequently, a zero-coupon bond will be always selling at a price less than its face value and can never sell at par with its face value. If it does then the time value of money concepts will be violated, which never happens.

Business

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Which of the following is an advantage of the FCFS dispatching rule when used in services?

A) FCFS maximizes utilization. B) FCFS minimizes the average number of jobs in the system. C) FCFS minimizes the average lateness of all jobs. D) FCFS maximizes the number of jobs completed on time. E) FCFS seems fair to customers.

Business

Which of the following is a basic assumption of linear programming?

A) The condition of uncertainty exists. B) Independence exists for the activities. C) Proportionality exists in the objective function and constraints. D) Divisibility does not exist, allowing only integer solutions. E) Solutions or variables may take values from -? to +?.

Business