Goverment Bonds are interest earning debt obligations with various maturity dates.
They can be classified as:
Taxable Securities issued by Central/State Goverments with varying maturities/Coupon
rates. The interest on the securities is taxable.
Tax-free Securities issued by Central/State Goverments with varying maturities/coupon
rates. The difference being that the interest received is not taxable. The effective yield for both securities is about 12-14% p.a
The short term goverment paper upto 365 days termed treasury bills yield a pre-tax return of
about 12-14% p.a. These investment products offer a moderate level of return and is usually
a hedge against inflation over the long term.
(An Amrok Group Concern)
H-1 Sudharshan Gardens,102-Velachery Road,
Guindy,Madras-600032. India. Tel: 91-44-2353610,2353612,2352200,2350133. Fax: 91-44-2350485.
BBS: 91-44-2351238.
Email:amrok@makroindia.com
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