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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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Q. What do you meant by Yield? Investment should be in such securities which yield the highest return. However, safety should not be sacrificed at the expense of yield. How
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