Answered: A bond that is bought at a price below…

A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a: Select one: a. simple loan b. fixed-payment loan. c. Coupon bond. d. Discount bond

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 4PA

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Question

A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a:

Select one:

a. simple loan

b. fixed-payment loan.

c. Coupon bond.

d. Discount bond

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