Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'zero coupon bond'?

A. interest-bearing bond issued at a deep discount to face value
B. bond issued with a coupon rate of zero and that trades at a deep discount to face value
C. bond that includes a stipulation allowing the issuer the right to repurchase and retire the bond at the call price after the call protection period
D. debt security issued by a government to fund government spending

Answer: bond issued with a coupon rate of zero and that trades at a deep discount to face value