**Q.** Which type of bond *most likely* earns interest on an implied basis?

- Floater
- Conventional bond
- Pure discount bond

what is the meaning of implied basis?

The answer is Pure Discount Bond

**Q.** Which type of bond *most likely* earns interest on an implied basis?

- Floater
- Conventional bond
- Pure discount bond

what is the meaning of implied basis?

The answer is Pure Discount Bond

It’s a horrible phrase.

If they mean it earns implied interest, they should say that it earns implied interest.

And what they mean by that is that the interest isn’t explicit; i.e., the bond doesn’t make interest (coupon) payments.

Where did you get this question?