Question:medium

The debentures which do not carry a specific rate of interest are known as:

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Zero Coupon Debentures:
  • No periodic interest payment
  • Issued at discount, redeemed at face value
  • Difference = Return to investor
Other debentures by interest: Fixed Rate, Floating Rate. By security: Secured, Unsecured. By redemption: Redeemable, Irredeemable.
  • Irredeemable debentures
  • Bearer debentures
  • Specific coupon rate debentures
  • Zero coupon rate debentures
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The Correct Option is D

Solution and Explanation

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