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    • Question

      A bond with face value ₹1,000 pays 8% annual coupon.

      If market yield for similar bonds is 10%, price of the bond (approx) will be:
      A Above ₹1,000 Correct Answer Incorrect Answer
      B Exactly ₹1,000 Correct Answer Incorrect Answer
      C Below ₹1,000 Correct Answer Incorrect Answer
      D Zero Correct Answer Incorrect Answer
      E Indeterminate Correct Answer Incorrect Answer

      Solution

      Coupon < market yield → bond trades at discount (price < par).

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