Which bond does NOT provide an investor with cash flow?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

The bond that does not provide an investor with cash flow is a zero coupon bond, which is represented by STC zr05 in this case. Zero coupon bonds, unlike traditional bonds, do not pay periodic interest (or coupon) payments to investors. Instead, they are issued at a discount to their face value and pay the face value upon maturity. The investor's return is realized when the bond matures, resulting in a difference between the purchase price and the maturity value.

In contrast, the other options represent traditional bonds, which typically provide regular coupon payments throughout their life, creating consistent cash flow for the investor. Therefore, choosing the zero coupon bond as the answer highlights the distinct characteristic of this type of investment regarding cash flow.

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