NISM Series II A : Registrars to an Issue and Share Transfer Agents - Corporate Exam Notes

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  • Fixed return: Debt securities provide fixed interest payments, unlike equity’s variable returns.
  • Preference in liquidation: Debt holders are paid before equity shareholders in case of winding up.
  • Market value: Trading price of a debt security, which may differ from its face value.
  • Current yield: Coupon payment divided by the market price of the debt security.
  • Yield to Maturity (YTM): Rate equating discounted future cash flows to the bond’s current price.

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