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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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