Economics · Economy
What is a primary characteristic and advantage of deep-discount bonds compared to regular interest-bearing bonds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They offer a fixed periodic coupon rate linked to inflation indices.
- 2They are issued at a significant discount to their face value and do not pay regular interest.✓
- 3They are sold at a premium to their face value and redeemed at a discount.
- 4They pay regular interest payments to the bondholders throughout their tenure.
Correct answer
They are issued at a significant discount to their face value and do not pay regular interest.
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