Fixed Income Markets - Debt & Bond Market
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary distinction between a bond and a debenture in the Indian context?
Bonds are typically issued by government or public sector entities and are secured, while debentures are issued by private companies and may be secured or unsecured.
What is a 'bearer bond' in fixed income markets?
Bond where ownership is determined by physical possession of certificate.
Which regulatory body oversees the corporate bond market in India?
SEBI (Securities and Exchange Board of India) regulates the corporate bond market, while RBI regulates the government securities market in India.
What is the face value of a Government Security typically in India?
Face value of G-Sec is typically Rs. 100.
What does the term 'coupon rate' mean in the context of fixed income securities?
The coupon rate is the fixed annual interest rate paid by the bond issuer to the bondholder, expressed as a percentage of the bond's face value.
What is a 'Benchmark Bond' in the Indian debt market?
The most recently issued and liquid government bond of a given maturity.
What is a Zero Coupon Bond?
A Zero Coupon Bond does not pay periodic interest; instead, it is issued at a deep discount to its face value and redeemed at par on maturity, with the difference representing the investor's return.
What is the typical maturity range of Treasury Bills in India?
Treasury Bills have maturities of 91, 182, and 364 days.
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