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FINANCIAL MARKET — OCM STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MARKET2 Marks
Question
Why $T-$Bill is also called ‘zero coupon bond’?
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Answer

Government does not pay any interest to people who buy $T-$bills, but sells these bills at a discounted rate. Hence, $T-$bill is also called ‘zero coupon bond’.

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