What is a pure discount bond?
What will be an ideal response?
A pure discount bond only has one cash flow at the maturity of the bond. Hence, the bond's price is less than its face value, and this discount of the price from the face value provides the return to holding the bond.
Business
You might also like to view...
When conducting international marketing research, enough data must be obtained from each individual to allow analysis at the individual level
Indicate whether the statement is true or false
Business
If a landlord wrongfully locks his or her tenant out of the premises of the rented property, it is termed constructive eviction
Indicate whether the statement is true or false
Business