Q1:Which one of the following statements about zero coupon bonds is true?A. Zero coupon bonds have no coupon payments but promise a single payment at maturity.B. Zero coupon bonds must sell for less than similar bonds that make periodic coupon payments.C. Zero coupon bonds make coupon payments but no principal payment at maturity.D. An investor expects a positive capital gain if they hold a zero coupon bond to expiry

Q2:Which ONE of the following statements is true?

A. A zero coupon bond has no coupon payments over its life and only offers a single payment at maturity.

B. A zero coupon bonds sell well below its face value (at a deep discount) because it offer no coupons.

C. Zero coupon bonds must sell, before maturity, for less than similar bonds that make coupon payments.

D. All of the above are true.