The selling price of a zero coupon bond will be what in relation to its face value?

Question

A. Zero

B. Lower

C. The same

D. Higher

Answer 1

B

for sure

Answer 2

b

Answer 3

B. Lower

As there is no interest paid for this bond, so this bond will be sold on discount to par or face value.

Answer 4

Surely the interest that would have been paid if it was a conventional bond is rolled up to provide a capital gain. Therefore it will depend how long the bond has to maturity as to what its price is.