Question

How is the interest income accounted for in a debt fund?

a.

It is accounted for annually

b.

It is not accounted for in NAV

c.

It is accounted for on a daily basis

d.

It is accounted for only when there is a default

Answer: (c).It is accounted for on a daily basis Explanation:Interest income in a debt fund is accounted for on a daily basis, reflecting the open-ended nature of the fund.

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Q. How is the interest income accounted for in a debt fund?

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