Government bonds are also known as G-sec bonds. They were first issued only for large investors like companies and banks. This year, the Government of India made changes to policy and open doors for small/retail investors and co-operative banks.
Central and State Governments issue G-sec bonds when they are in need of funds for infrastructure development. When an investor buys a government bond, they have the right to be paid interest on the bonds as well as get back the principal amount at the time of maturity. The interest is either annually or twice a year.
Government bonds are usually defined by coupons. Coupons are of two types: Fixed rate coupons and floating rate coupons, zero coupon bonds, inflation-indexed bonds, savings bonds, callable bonds.Apply Now for Government Bonds
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