Question:
The debentures which do not carry a specific rate of interest are called:
The debentures which do not carry a specific rate of interest are called:
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Zero Coupon Rate Debentures are issued at a discount, and the investor receives the full face value at maturity without any interim interest payments.
Updated On: Jan 25, 2025
- Zero Coupon Rate Debentures
- Specific Coupon Rate Debentures
- Unsecured Debentures
- Secured Debentures
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The Correct Option is A
Solution and Explanation
Zero Coupon Rate Debentures are issued without any specified interest rate. Instead of paying interest periodically, they are issued at a discount, and the investor receives the face value upon maturity.
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