Which one of the following statements about zero coupon bonds is NOT true?

Which one of the following statements about zero coupon bonds is NOT true?



A) Zero coupon bonds have no coupon payments but promise a single payment at maturity.
B) Zero coupon bonds must sell for less than similar bonds that make periodic coupon payments.
C) Zero coupon bonds make coupon payments but no principal payment at maturity.
D) All of the above statements are true.





Answer: C


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