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Home Questions 6SQVBMWXQG
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

When debentures are issued with a specified rate of interest, that specific rate of interest is also called..............

Options:

Rate of bank

Rate of payment

Coupon rate

All of these

Correct Answer:

Coupon rate

Explanation:

The correct answer is option 3- Coupon rate.

Specific Coupon Rate Debentures: These 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.

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