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Redeemable preference shares are discounted over the last:
AEight years
BThree years
CFive years
DSeven years
Answer & Solution
Correct answer: C. Five years
1. The value counted falls as maturity approaches.
2. The schedule steps down 20 per cent each year.
3. It runs over the last five years of tenor.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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