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Zero Coupon Bonds are issued :...

Zero Coupon Bonds are issued :

A

At zero Interest Rate

B

With Specified Rate of Interest

C

Without Specified Rate of Interest

D

None of These

Text Solution

Verified by Experts

The correct Answer is:
C
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Name the financial instrument which may be used in the following situations: (i) A company needs funds to meet floatation cost in order to issue equity shares in the market. (ii) The instrument that is issued during the period of tight liquidity when the deposit growth of bank is slow but demand for credit is high. (iii) These are also known as zero coupon bonds and are isssued by RBI on the behalf of central goverment. (iv) It is used by one bank having surplus funds to meet the funds requirements of another bank facing shortage of funds.

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Fifteen coupons are numbered 1, 2, 3,…, 15 respectively. Seven coupons are selected random one at a time with replacement. The probability that the largest number appearing on the selected coupons is atmost 9, is :