Term Discount Bonds

Term Discount Bonds These bonds have a higher face value than the issue price, the face value being redeemed in a certain number of instalments, equally divided. For example, the IDBI term discount bonds have a face value of Rs. 9,000, with an issue price of Rs. 5,000 redeemed in three equal instalments of Rs 3,000 a month after the end of the third, fourth and fifth years.

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