n NISM Certifications
NSM General NISM
Medium

The concept of accrued interest applies to which securities?

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Coupon bond

    Correct answer

  2. B

    Zero coupon bond

  3. C

    Both of the above

  4. D

    None of the above

Why this is the answer

Accrued interest refers to interest accumulated since the last coupon payment, applicable only to coupon bonds. Zero coupon bonds do not pay periodic interest.

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