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Chap 12 practice ques

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chap 12 practice ques

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • May 6, 2019 at 6:20 pm #515121
    alikhakar
    Participant
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    Que 1 asks “which of the following is issued at a discount to its redemption value and pays no interest during its life time?”
    Correct answer is zero coupon bond.
    But there is also the option of “deep discount bond”. Doesn’t it fall into same category ?

    May 7, 2019 at 2:23 pm #515221
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54765
    • ☆☆☆☆☆

    No. A deep discount bond will be issued at a discount, but will pay some interest.

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