Question

One of the bonds used to raise debt is zero coupon bonds. Which of the following statement is incorrect regarding Zero Coupon Bond?

A Zero Coupon Bond do not pay any interest
B Yield to maturity is Nil as it pays no interest
C Investors buy Zero Coupon Bond at discount to face value
D Investors receive money on par at maturity
E All of the above are correct
Practice Next

Relevant for Exams:

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)