Question

What type of investment opportunity do NCDs provide for debt investors like LIC?

a.

Low-risk investment

b.

Convertible into equity shares

c.

High-interest earning opportunity

d.

Short-term investment

Posted under IC 89 Management Accounting

Answer: (c).High-interest earning opportunity Explanation:Financial analysts believe that NCDs (Non-Convertible Debentures) provide good opportunities for debt investors like LIC to earn high interest in investment, especially when banks tighten their investment process in the slowing economy.

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