Question
Which of the types of bonds are in the nature of
zero-coupon bonds? A.    Sovereign Gold Bonds B.    Oil Bonds C.    Treasury Bills D.    Cash management BillsSolution
Zero coupon bonds pay no periodic coupon, rather they are issued at a discount and redeemed at full face value. The difference in discounted issue price and face value accounts for the return on these bonds. Treasury bills and cash management bills issued by GoI are short term, money market bonds which are issued in such form.
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