......................................debentures are issued at a substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.

Specific Coupon Rate Debentures Zero Coupon Rate Debentures Registered Debentures Bearer Debentures

Zero Coupon Rate Debentures

Zero Coupon Rate Debentures: These debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.