Start learning 50% faster. Sign in now
The bonds that do not provide any periodical payments as cash inflows but only redeemed at face value at the end of its maturity are zero coupon bonds. The implicit interest rate which is earned on these bonds is the difference between the price (issued at a discount) at which it is issued and the face value (generally redeemed at FV). Also, known as “Deep Discount Bonds”. Also, majorly the government issued money market securities, known as “Treasury Bills” are of Zero Coupon nature. For Ex., the short-term debt instrument, issued by the government of India known as treasury bills, are issued at a price which is less than the face value. These are a type of Zero-Coupon Bonds. A treasury bill having maturity of 91 days is issued at 98 having face value of 100. Explicitly there is no cash inflows for recovery of interest payments but the holder implicitly gets an interest rate of (100-98)/98 on a 91-day basis or (100-98)/98*(365/91) on an annual basis.
1. Mark the incorrect match:
The full form of MRA is
What should be the composition of the Nomination and Remuneration Committee under the Companies Act, 2013?
As laid down under section 17 of the National Investigation Agency Act any person who contravenes any decision or direction issued under sub-section (3)...
Photocopies of a document made from the original are
What is e-commerce?
GFSI stands for?
When did the Real Estate Regulation and Development) Act, 2016 came into effect?
As per the Contract Act what is the liability of person to whom money is paid, or thing delivered, by mistake or under coercion?
The term negotiable instrument is defined in the Negotiable Instruments Act 1881, under