Question

Accrual bond are also known as ____________.

• A. Zero Coupon Bonds
• B. Fixed interest Bonds
• C. Low Interest Bonds
• D. Flate Rate Bonds

Answer 1

The correct option is A

Zero Coupon Bonds

A zero-coupon bond, also known as an "accrual bond," is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.