State about the two types of government securities, Financial Management

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State about the two types of Government Securities

There are two types of Government Securities which are offered:

Government Floating Rate Bonds which pay a floating rate depending upon base rate.

Government Securities Regular debentures which pay a fixed rate of return and principal amount is returned on maturity. 

The present yield on Government Securities is in the range of 5.50 - 7.00 per cent depending on the maturity.

 


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