When debentures are issued with a specified rate of interest, that specific rate of interest is also called..............
Answer & explanation
Correct answer: option 3
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.