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Which of the following is incorrect for Zero Coupon Bond?

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Which of the following is incorrect for Zero Coupon Bond?
1). These are issued at discount.
2). There is no interest paid on these bonds.
3). They are repaid at face value.
4). The buyer of these bonds gets payment at the maturity of the bond.


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2 vote
Answered by on | Votes 2 |
Zero coupon bond is a debt instrument that is issued at a discount and buyer of these bonds get payment at the face value after the maturity of the bond. So, the holders of these bonds do not earn an interest per se.

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