Correct Answer: Deep Discount Bonds are issued at a price substantially below the maturity value.

Solution : Answer = Deep Discount Bonds are issued at a price substantially below the maturity value.

Deep Discount Bonds are issued at a significantly discounted price but not necessarily below the maturity value. The discount reflects the difference between the issue price and the face value of the bond. Zero Coupon Rate Debentures (Bonds) are those debentures that do not carry a specific rate of interest.
Hence, the correct option is 3.