In order to compensate the investors, what kind of 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?
Zero coupon rate debenture
The correct answer is Zero coupon rate debenture. Zero coupon rate debentures are issued at substantial discount, and the difference between nominal value and issue price is treated as the amount of interest related to the duration of the debentures.
Similar Questions
The part of capital which is called-up only on winding up is called ______.
If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:
From which of the following, companies cannot buy its own shares?
Important Questions from Corporate Accounting
Acquisition of firms is the same as:
(a) a merger
(b) an amalgamation
(c) a takeover
(d) an absorption
Select the correct code.
A concept given for diversified corporations which advocates (a) What businesses should a diversified corporation own and why; and (b) What organizational structure, management processes, and philosophy will foster superior performance from the corporation’s individual business units, is known as:
A letter of acceptance sufficiently stamped and duly addressed is put into the course of transmission. There is a _______.
An agent is personally liable to third parties in which of the following situations?
A. If an agent acts for an undisclosed Principal
B. Trade usage and customs make the agent personally liable
C. If an agent signs a contract in the Principal's name
D. If an agent acts for the named Principal
E. If an agent works for a foreign Principal.
Choose the correct answer from the options given below:
An approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return is called ________
