A discount bond
A) pays the bondholder a fixed amount every period and the face value at maturity.
B) pays all interest and the face value at maturity.
C) pays the face value at maturity plus any capital gain.
D) pays the bondholder the face value at maturity.

The correct answer is letter "D": pays the bondholder the face value at maturity.

Explanation:

Bonds that are issued for an amount lower than their face value are called discount bonds. They are an indicator that the company may not be able to take care of its liabilities. Though, they can also be bonds trading at a lower price than their face value in the secondary market.  

At the maturity date, discount bonds pay the holder the face value allowing the investor to profit.

answer; schedule c;

answer when little or no data is available;