The specified rate of interest at which Debentures are issued is called............
Answer & explanation
Correct answer: option 3
The correct answer is option 3- coupon rate.
The specified rate of interest at which Debentures are issued is called coupon rate.
Specific Coupon Rate Debentures are issued with a specified rate of interest, which is called the coupon rate. The specified rate may either be fixed or floating. The floating interest rate is usually tagged with the bank rate.