Question

A company issues ₹10 crore worth of bonds at a coupon rate of 8% annually, while the market interest rate is 10%. The bonds are sold at a discount. What is the most likely reason behind this pricing?

A The bonds are risk-free
B The bonds are zero coupon
C The coupon rate is lower than market rate
D The bonds have a long maturity period
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)