In general, discount bonds do not have maturity. Q. Is this statement true, false? Plz explain...
In general, discount bonds do not have maturity.
Q. Is this statement true, false? Plz explain the statement
Homework Answers
Correct answer: FALSE
This statement is false, because discount bonds are generally zero-coupon bonds which are issued at discounted price i.e price lower than maturity value. It has a maturity date on which investor get maturity amount i.e face value.
So, Discount Bonds have maturity.
Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
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In general, discount bonds do not have
maturity.
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