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Juliana V.

asked • 10/04/20

Accounting Managerial Zero Bono

For a zero-coupon bond:

A. The coupon rate is lower than the market rate

B. The cash received from investors is less than the bond's face value

C. Amortization of bond discount equals to the interest expense

D. The bond's net book value rises over time

E. All of the above


  1. For a bond issued at a premium:

A. Net book value increases over time

B. Net book value decreases over time

C. Coupon payment is greater than interest expense

D. Coupon payment is lower than interest expense

E. B and C

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