RBI Grade B Officer (General / DEPR / DSIM) 2025 · Question 258 of 259

Which of the following statements is most accurate regarding zero-coupon bonds? (This question and theme may not be exact as per the exam.)

Finance and Management

AA. Zero-coupon bonds are issued at a discount and redeemed at face value, with the return earned entirely through price appreciationCorrect
BB. Zero-coupon bonds provide periodic coupon payments but no capital gains
CC. Zero-coupon bonds are not affected by changes in market interest rates
DD. Zero-coupon bonds always have lower duration than coupon-paying bonds
EE. Zero-coupon bonds cannot be issued by the government

Answer: A. A. Zero-coupon bonds are issued at a discount and redeemed at face value, with the return earned entirely through price appreciation

Official answer key verified. Detailed explanation coming soon.

Source: RBI Grade B Phase 2 2025 Finance and Management recollected questions with answer key (EduTap compilation) · memory-based

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RBI Grade B Officer (General / DEPR / DSIM) 2025 · Question 258 of 259

Finance and Management

AA. Zero-coupon bonds are issued at a discount and redeemed at face value, with the return earned entirely through price appreciationCorrect
BB. Zero-coupon bonds provide periodic coupon payments but no capital gains
CC. Zero-coupon bonds are not affected by changes in market interest rates
DD. Zero-coupon bonds always have lower duration than coupon-paying bonds
EE. Zero-coupon bonds cannot be issued by the government

Official answer key verified. Detailed explanation coming soon.

Source: RBI Grade B Phase 2 2025 Finance and Management recollected questions with answer key (EduTap compilation) · memory-based

Practice the full RBI Grade B Officer (General / DEPR / DSIM) 2025 paper

Timed test with all 259 questions, just like the real exam.