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Question

Accrual bonds are also known as _____________.

A
Zero Coupon Bonds
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B
Fixed interest Bonds
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C
Flat Rate Bonds
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D
Low Interest Bonds
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Solution

The correct option is D 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.

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