Which of the following statements is true about a zero coupon bond?
A. A zero coupon bond is taxed as a capital gain at the time the bond matures.
B. A zero coupon bond is issued at a substantial discount below its par value.
C. A zero coupon bond is issued at a coupon rate that adjusts for inflation.
D. The interest received every year on a zero coupon bond is taxed as interest income.
E. The discount on the issue of a zero coupon bond is written off over its life in the investor's financial statement.
Answer: B
You might also like to view...
Mantra Oil Inc. indorses a check "Pay Habib Coal Corp. only if it delivers 1,000 tons of coal by September 30, 2014." Under Revised Article 3 of the Uniform Commercial Code, this is a ________ indorsement.
A. qualified B. restrictive C. blank D. conditional
Which of the following is the focus of push marketing at the decline stage of the product life
cycle? A) exhibition of product superiority over competitors' offerings B) payment of a minimal fee to retailers to include the product in their store C) product demonstration by company representatives at retailer stores D) familiarization of consumers with product functionality
The goal of global leadership development is to
A. tick off the boxes so that management will recognize your skills. B. build language fluency. C. build allies and networks in the firm where your skills are recognized. D. obtain the variety of transformational experiences that are needed to develop global leadership capability.
The Robinson-Patman Act is a federal statute that makes it mandatory to provide a notification prior to a merger
Indicate whether the statement is true or false