
Government Bonds
Government bonds are debt instruments issued by central banks to fund operations, offering various types: Treasury Bills, Fixed Rate Bonds, Floating Rate Bonds, State Development Loans, Sovereign Gold Bonds, and Zero Coupon Bonds. Each bond carries a credit rating reflecting the country’s financial health. As the government is a nation’s top institution, its bonds typically enjoy high credit ratings. In India, government bonds are assigned an SOV rating, denoting a sovereign rating, which signifies their reliability and low risk. These bonds provide investors with secure options to earn returns while supporting national financial needs.
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