This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which one of the following statements correctly describes the major drawback of a zero-coupon bond? (Read 181 times)

ninaj

  • Full Member
  • ***
  • Posts: 136
on: Mar 29, 2022
Which one of the following statements correctly describes the major drawback of a zero-coupon bond?
◦ Unless the bond is held in a tax-sheltered account, the investor must pay taxes on the annual accrued interest even though no interest is actually received.
◦ The conversion feature found on most zero-coupon bonds generally requires the investor to switch to a coupon-bearing bond after a period of 5 years.
◦ The lack of an annual coupon basically prohibits the investor from locking in a high rate of return.
◦ Because there is no reinvestment of a coupon payment, large capital losses accrue when interest rates decline.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ninaj on Mar 29, 2022

Spike8502

  • Full Member
  • ***
  • Posts: 140
Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


ninaj

  • Member
  • Posts: 136
Reply 2 on: Mar 29, 2022
Gracias!

fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

The average adult has about 21 square feet of skin.

Major structures of the human brain. Major structures of the human brain.
Teres Major Teres Major
As a biochem major As a biochem major
Language is the basis of human culture around the world. The past decade has seen major developments ... Language is the basis of human culture around the world. The past decade has seen major developments ...
Major Causes of Death in U.S by Age Group Major Causes of Death in U.S by Age Group
Formation of a peptide bond between two amino acids Formation of a peptide bond between two amino acids
Video: Pericarditis

For a complete list of videos, visit our video library