Recent Lessons

Show all results for ""

CP- A3 and Zero-Coupon Bonds

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of Treasury Bills issued by the Government of India?

To meet the government's short-term cash requirements (correct)
To provide investment opportunities for retail investors
To raise funds for public sector undertakings
To meet the government's long-term financing needs

Which of the following conditions must be met for the listing of debt securities with a maturity period of more than 365 days, issued by companies on a private placement basis?

The debt securities must be issued by companies that are listed on a recognized stock exchange
The debt securities must be issued and traded in physical form
The debt securities must have a credit rating from a SEBI-registered agency (correct)
The debt securities must be issued by companies that have previously issued equity or debt securities through a public offer

Which of the following is a requirement for the listing of debt securities issued by unlisted companies or other entities on a private placement basis?

The debt securities must comply with the relevant conditions prescribed by SEBI for getting them listed on the stock exchanges (correct)
The debt securities must have a maturity period of less than 365 days
The debt securities must be issued by companies that have previously issued equity or debt securities through a public offer
The debt securities must be issued and traded in physical form

What is the primary purpose of the Securities Transaction Tax (STT) levied on stock exchange transactions?

To provide a stable source of revenue for the government (A) Signup and view all the answers

Which of the following is a correct statement about the listing requirements for debt securities issued by companies, including listed companies, on a private placement basis?

The debt securities must comply with the conditions prescribed by SEBI for getting them listed on the stock exchanges (C) Signup and view all the answers

Which of the following statements is true about CP-A3 Coupon Bonds?

The issuer pays interest at a predetermined rate at agreed intervals, typically twice a year. (D) Signup and view all the answers

Which of the following statements accurately describes Zero-Coupon Bonds?

The bonds are issued at a discount and repaid at a face value, with no periodic interest payments. (B) Signup and view all the answers

What is the key feature of a Convertible Bond?

It can be converted into equity at a fixed conversion price. (B) Signup and view all the answers

Which of the following statements accurately describes Commercial Papers?

They are short-term promises to repay fixed amounts, issued by companies with a high credit standing. (C) Signup and view all the answers

What is the minimum time period for which Commercial Papers can be issued?

7 days (B) Signup and view all the answers

Flashcards are hidden until you start studying