Interest Rate (NCD) is the percentage return payable on the face value of a debenture, paid periodically or at maturity as per issue terms
Interest Rate (NCD) refers to the fixed or floating rate of return that a company promises to pay investors on their Non-Convertible Debentures. It is expressed as a percentage of the face value and determines the periodic interest income earned by the debenture holder. The interest may be paid monthly, quarterly, annually, or cumulatively at maturity, depending on the terms of the issue.
The rate is influenced by factors such as the company’s credit rating, tenure of the NCD, prevailing market interest rates, and overall demand from investors. A higher credit risk generally results in a higher interest rate to attract investors.
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