ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Treasury Bills or T-bills are also known as Zero-Coupon Bonds, which are short-term government securities or instruments issued by Reserve Bank of India (RBI) on behalf of the Government of India that pays no interest.

Detailed explanation-2: -Treasury bills are zero coupon securities and pay no interest.

Detailed explanation-3: -T-bills are zero-coupon bonds that are usually sold at a discount and the difference between the purchase price and the par amount is your accrued interest.

Detailed explanation-4: -Zeros, as they are sometimes called, are bonds that pay no coupon or interest payment. With a zero, instead of getting interest payments, you buy the bond at a discount from the face value of the bond and are paid the face amount when the bond matures.

Detailed explanation-5: -A zero-coupon/deep discount bond is a debt security with no coupon (zero-coupon) or substantially lower coupon than current interest rates. The bonds are issued at a discount to their nominal value, with the discount reflecting the prevailing market interest rate.