Question :

The debentures do not carry a specific rate of interest. In order to compensate the investors such debentures are issued at a substantial discount. The difference between the face value and the issue price is the total amount of interest related to the duration of debentures.

Option 1: Zero Coupon Rate Debentures (Bonds)

Option 2: Bearer Debentures 

Option 3: Secured Debentures

Option 4: Unsecured Debentures 

Question : Which of the following statements is not true?

Option 1: Coupon rate is a specified interest rate payable on debenture.
 

Option 2: Zero Coupon Bonds are issued  with a specified interest rate.
 

Option 3: Deep Discount Bonds are issued at a price substantially below the maturity value.

Option 4: In India, debentures issued by Companies have necessarily to be secured.
 

Question : Which of the following statements is not true?

Option 1: Coupon rate is a specified interest rate payable on debenture.
 

Option 2: Zero Coupon Bonds are issued  with a specified interest rate.
 

Option 3: Deep Discount Bonds are issued at a price substantially below the maturity value.

Option 4: In India, debentures issued by Companies have necessarily to be secured.
 

Question : Which one of the following statements is true regarding the rate of interest?

Option 1: The rate of interest may be zero.

Option 2: The rate of interest increases with economic growth.

Option 3: The rate of interest can not be determined.

Option 4: The rate of interest can not be zero.

Question : If a company issued 1,000, 12% debentures of 100 each at a premium of 10%. Here, in 12% debentures, 12% represents:

Option 1: Rate of dividend

Option 2: Rate of tax

Option 3: Rate of interest

Option 4: None of the above