MANAGEMENT

Detailed explanation-1: -T-Bills, also known as zero coupon bonds, are issued by the RBI on the behalf of the cental government. Q. Name the financial instrument which may be used in the following situation. These are also known as zero coupon bonds and are issued by RBI on the behalf of central government.

Detailed explanation-2: -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-3: -A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.

Detailed explanation-4: -Treasury Bills, also known as T-Bills, are government-backed, short-term securities issued by the CBN. They are issued when the government needs to borrow funds for a period of time. They have a maximum maturity of 364 days.

Detailed explanation-5: -A zero coupon bond is a bond which is issued at a price which is less than its face value and, is repaid at its face value on the date of its maturity. Since treasury bills follow this rule, they are also called zero coupon bonds.