CP- A3 and Zero-Coupon Bonds

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

To meet the government's short-term cash requirements

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 have a credit rating from a SEBI-registered agency

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

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

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

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.

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.

What is the key feature of a Convertible Bond?

It can be converted into equity at a fixed conversion price.

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.

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

7 days

Learn about the characteristics of coupon (CP- A3) bonds and zero-coupon bonds. Understand how these bonds function in terms of interest payments, maturity, and market trading.

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