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What is meant by redemption of public debt?

Asked by Topperlearning User 24th April 2015, 7:39 AM
Answered by Expert
Answer:

A redeemable debt is one that the government repays after a fixed period of time. When the government borrows money from the public, they sell securities to the public and pay the interest at regular intervals. When the debt matures, the public surrenders the security to the government and receives the principal along with the interest amount, if any, due to them. Banks and other institutions are the holders of government securities.

Answered by Expert 24th April 2015, 9:39 AM
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