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Home Questions BK3BZWP4SN
Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
When debentures are issued with a specified rate of interest, then these types of debentures are called:
Options:
Bearer Debentures
Zero Coupon Rate Debentures
Unsecured Debentures
Specific Coupon Rate Debentures
Correct Answer:
Specific Coupon Rate Debentures
Explanation:
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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