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Question : Debentures (Bonds) with zero coupon rates are those-

Option 1: Which carry the lowest interest rates.

Option 2: Which do not carry any rate of interest.

Option 3: Which carry the highest rate of interest.

Option 4: None of the above


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Which do not carry any rate of interest.


Solution : Zero Coupon Debentures (Bonds) are those debentures that do not carry any rate of interest. These debentures are issued at a discount and redeemed at Par.

Hence the Correct answer is option 2.

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