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Business Studies

Call Money and T- Bill

State the dif...

Question

State the difference between redeemable debt and irredeemable debt.

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Solution

Irredeemable debt is debt that has no specific redemption date or maturity period. The issuing authority or entity pays a specified interest rate periodically but provides no data on when principal will be returned.

Redeemable debts have an expiry date and have to be payed off before that.

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