In order to compensate the investors, what kind of debentures are issu
Right Answer is: A
• Zero-coupon rate debenture-In order to compensate the investors, these 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.
• Bearer debentures- These are unregistered debentures which can be transferred by mere delivery.
• Specific coupon rate debentures- These debentures are issued with a coupon rate which is a specific rate on interest.
• Naked debentures-These debentures are not secured by an asset.