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.