Question：A company issues $1m of debt at a price of $50 per $100 debt, redeemable at $105 in ten years' time, with a charge over the company's trade receivables. No interest is payable.
What type of debt is this?
A. Convertible debt.
B. Zero coupon debt.
C. Unsecured debt.
D. Deep discount debt.
The correct answer is: Zero coupon debt.
解析：Zero coupon debt is debt that is issued at a large discount to the maturity value. No interest is payable, all returns to investors being in the form of capital appreciation.
Deep discount debt is a form of loan notes for which the issue price is at a large discount to the nominal value, as in this example. However, some level of annual interest would normally be payable as well.
Unsecured debt is debt that does not have any charges connected to it. Here there is a charge.
Convertible debt is a form of fixed interest security that is convertible into equity at a predetermined date and price.