With reference to the Additional Tier-1 bonds, which of the following statements is Incorrect? - Study24x7
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UPSC & State PSC
1008 followers study24x7 16 Feb 2021 01:00 PM study24x7 study24x7

With reference to the Additional Tier-1 bonds, which of the following statements is Incorrect?

A

These are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basel-III norms.

B

These bonds carry a flexible maturity with options to prepone and postpone the period of maturity.

C

The attraction for investors is higher yield than secured bonds issued by the same entity.

D

The issuing bank has the option to call back the bonds or repay the principal after a specified period of time.

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