Question

    Which of the following is/are NOT a feature of zero

    coupon bonds? i. These are issued at deep discount and redeemed at full face value ii. You do not receive any annual interest payments iii. Rating of the bond during its tenure can change the price of the bond iv. The price of the bond increases with increase in the interest rates in the market
    A Only i Correct Answer Incorrect Answer
    B Only ii Correct Answer Incorrect Answer
    C Only iv Correct Answer Incorrect Answer
    D Only ii and iii Correct Answer Incorrect Answer
    E Only i and iv Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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