Which of the following bonds is not typically issued at par value?

A zero coupon bond is indeed the correct answer to this question. These bonds are unique because they do not pay periodic interest, or coupon payments, during their life. Instead, they are sold at a significant discount to their face value. At maturity, the bondholder receives the full face value, resulting in the bondholder's profit. The difference between the purchase price and the maturity value represents the interest earned over the life of the bond, which is why a zero coupon bond is not issued at par value.

In contrast, both registered bonds and municipal bonds are often issued at par value. Registered bonds are securities that are registered in the owner's name, and they typically pay interest regularly, aligning with par value issuance. Similarly, municipal bonds are debt securities issued by local government entities to finance public projects and often issue at par to attract investors.

Callable bonds, while they can be issued at par, may end up being issued at a premium depending on interest rate conditions and market demand. However, callable bonds do not have the same guaranteed issuance method as zero coupon bonds, which emphasizes the reason for zero coupon bonds being the correct choice in this context.