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    Question

    How do Zero Coupon Bonds (ZCBs) generate returns for

    investors, as per the ₹10,000 crore issuance allowed to the Power Finance Corporation (PFC)?
    A By providing fixed annual interest payouts Correct Answer Incorrect Answer
    B By offering tax-free interest earnings Correct Answer Incorrect Answer
    C By being issued at a discount and redeemed at full face value Correct Answer Incorrect Answer
    D By being linked to inflation indexation Correct Answer Incorrect Answer
    E By offering flexible interest rates based on market conditions Correct Answer Incorrect Answer

    Solution

    Zero Coupon Bonds (ZCBs) generate returns by being issued at a discount and redeemed at full face value, ensuring investors earn profits upon maturity.

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