Pays only face value at maturity is repayment at maturity ...
Terminology for Bonds and Loans • Principal given to borrower when loan is made • Simple loan: principal plus interest repaid at one date • Fixed-payment loan: series of (often equal) repayments • Bond is issued at some price • Face Value is repayment at maturity date • Zero coupon bond pays only face value at maturity • Coupon bond ................
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