This topic contains a solution. Click here to go to the answer

Author Question: Which one of the following statements correctly describes the major drawback of a zero-coupon bond? (Read 183 times)

ninaj

  • Full Member
  • ***
  • Posts: 136
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.


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
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
Excellent


miss.ashley

  • Member
  • Posts: 371
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

For a complete list of videos, visit our video library