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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chap 12 practice ques
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 ?
No. A deep discount bond will be issued at a discount, but will pay some interest.
