2016
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
2 years
|
|
|
3 years
|
|
|
1 years
|
|
|
2.5 years
|
Detailed explanation-1: -The maturity period is five years for the bonds raised above the rupee equivalent of 50 million dollars in a financial year. The conversion of these bonds happens at market rate on the date of settlement of transactions undertaken for issue and servicing of interest of the bonds.
Detailed explanation-2: -When KIIFB undertook tender, the rate received was 10.15%. Andhra Pradesh Capital Regional Development Authority was able to fetch an interest rate of 10.72%. Meanwhile, KIIFB collected money via masala bonds at an interest rate of 9.723%.
Detailed explanation-3: -Masala Bonds have a minimum maturity period of 3 years. However they can be issued for three or five or seven year maturities.
Detailed explanation-4: -Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination. In 2019, Kerala became the first Indian state to issue Masala Bonds worth Rs. 2, 150 crore on the London Stock Exchange.