Respuesta :
An advantage of issuing zero-coupon bond by corporation is that they have lower interest rates than conventional bonds. Correct option is (a).
An accrual bond, also referred as a zero-coupon bond, is a financial security that doesn't pay the interest but trades at a substantial discount, earning profit when it matures and therefore is returned for its full-face value.
Zero coupon bonds typically have extended maturity dates; many more are delayed by 10, fifteen, or maybe more years. An investor can plan for a longer-term objective, like as financing for a child's college education, that use these long-term maturity dates. An investor can use the substantial discount to invest a small sum of money that will rise over several years.
Normally zero-coupon bonds are issued at deep discount and at the time of maturity they are redeemed at par, the difference between issue value and redemption value is the interest earned by investor.
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