Finance · Government Securities
Government Securities (G-Secs) are debt instruments issued by the government to fund fiscal requirements. When a standard fixed-rate Government of India dated security is auctioned, which of the following statements most accurately describes its Coupon Rate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The Coupon Rate represents the yield to maturity of the bond and fluctuates daily based on market demand and supply.
- 2The Coupon Rate is determined by the inflation index as released by the National Statistical Office (NSO) every month.
- 3The Coupon Rate is fixed at the time of issuance and remains constant throughout the tenure of the bond, usually paid semi-annually.✓
- 4The Coupon Rate is a floating rate that is linked to the prevailing Repo Rate and changes every quarter.
Correct answer
The Coupon Rate is fixed at the time of issuance and remains constant throughout the tenure of the bond, usually paid semi-annually.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Finance?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Government Securities MCQs →Want more practice questions on Government Securities?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Finance · Government Securities