CURRENT AFFAIRS

Detailed explanation-1: -Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity.

Detailed explanation-2: -Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond “matures” or comes due.

Detailed explanation-3: -Coupon yield, also known as the coupon rate, is the annual interest rate established when the bond is issued that does not change during the lifespan of the bond. Current yield is the bond’s coupon yield divided by its current market price. If the current market price changes, the current yield will also change.