Question : Debentures (Bonds) with zero coupon rates are those-
Option 1: Which carry the lowest interest rates.
Option 2: Which do not carry any rate of interest.
Option 3: Which carry the highest rate of interest.
Option 4: None of the above
Correct Answer: Which do not carry any rate of interest.
Solution : Zero Coupon Debentures (Bonds) are those debentures that do not carry any rate of interest. These debentures are issued at a discount and redeemed at Par.
Hence the Correct answer is option 2.
Question :
The debentures do not carry a specific rate of interest. In order to compensate the investors such debentures are issued at a substantial discount. The difference between the face value and the issue price is the total amount of interest
Question : Which of the following statements is not true?
Question : Which one of the following statements is true regarding the rate of interest?
Question : If a company issued 1,000, 12% debentures of 100 each at a premium of 10%. Here, in 12% debentures, 12% represents:
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