The best advantage of a zero-coupon bond to
the issuer is that the
A. Bond requires a low issuance cost.
B. Bond requires no interest income calculation to
the holder or issuer until maturity.
C. Interest can be amortized annually by the
APR method and need not be shown as an
interest expense to the issuer.
D. Interest can be amortized annually on a
straight-line basis but is a noncash outlay
The answer is d but i am not bale to understand why
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Srikanth Ganesh Babu
GURGAON
India
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