New Month End Dhamaka - Flat 55% Off on All Courses

    Question

    At what discounted price will the Zero Coupon Bonds of ₹1

    lakh face value be issued by Power Finance Corporation?
    A ₹50,000 Correct Answer Incorrect Answer
    B ₹49,950 Correct Answer Incorrect Answer
    C ₹51,000 Correct Answer Incorrect Answer
    D ₹50,454 Correct Answer Incorrect Answer
    E ₹48,500 Correct Answer Incorrect Answer

    Solution

    The bonds will be issued at a discounted price of ₹50,454 and will be redeemed at full face value of ₹1,00,000, thus providing fixed returns without periodic interest.

    Practice Next

    Relevant for Exams: