Question
One of the bonds used to raise debt is zero coupon
bonds. Which of the following statement is incorrect regarding Zero Coupon Bond?Solution
A zero-coupon bond is a debt security that does not pay interest but instead is issued at a deep discount and redeemed at par. The difference between the issue price and the redemption value is the return/profit earned. As such, zero coupon bonds do have a yield to maturity.
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A proxy ___________ the right to speak at such meeting and shall not be entitled to vote except on a poll
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