From Coupon Rate Point of view, Debentures are classified into:
- A2 types
- B4 types
- C6 types
- D8 types
Solution & Step-by-step Explanation
From a coupon rate point of view, debentures are classified into 2 types:Fixed Rate Debentures: Debentures carrying a fixed predetermined interest rate.Zero Coupon / Deep Discount Bonds/Debentures: Debentures issued without any specified interest rate where the return is given via a discount on issue price.