n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is NOT a feature of a zero-coupon bond?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No periodic interest payments

  2. B

    Sold at a discount to face value

  3. Pays interest periodically

    Correct answer

  4. D

    Matures at face value

Why this is the answer

Zero-coupon bonds do not pay interest periodically; they are issued at a discount and mature at face value.

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