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Home Questions KCVYYHXBXC
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

The floating interest rate on 'Specific Coupon Rate Debentures' is usually tagged with the ............ rate.

Options:

Company rate

Bank rate

Share rate

Holder rate

Correct Answer:

Bank rate

Explanation:

The correct answer is option 2- Bank rate.

Specific Coupon Rate Debentures: These debentures are issued with a predetermined interest rate, known as the coupon rate. This rate can be fixed or floating, with floating rates often tied to the bank rate.

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