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    • Question

      Bond face value ₹1000, coupon 10%, maturity 5 years,

      YTM 12%. Price = ? (PV factors: 3.605 for annuity, 0.567 for single sum)
      A ₹927.50 Correct Answer Incorrect Answer
      B ₹1,000 Correct Answer Incorrect Answer
      C ₹1,100 Correct Answer Incorrect Answer
      D ₹850 Correct Answer Incorrect Answer

      Solution

      Price = (₹100×3.605) + (₹1000×0.567) = ₹360.50 + ₹567 = ₹927.50.

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