Question
If a bond is issued when prevailing interest rates are
8% at Rs.1,000 par value with a 8% annual coupon. Which of the following is NOT correct?Solution
If interest rates drop to 6%, the bond will continue paying out at 8%, making it a more attractive option. Investors will purchase these bonds, bidding the price up to a premium until the effective rate on the bond equals 8%. On the other hand, if interest rates rise to 10%, the 8% coupon is no longer attractive and the bond price will decrease, selling at a discount until it's effective rate is 8%.
Overhauling expenses of 25,000 for the engine of a motor car to get better fuel efficiency is :
Who among the following is said to have witnessed the reigns of eight Delhi Sultans?
Tata Steel Ltd has planned capital expenditure (capex) of Rs ________ crore for 2022-23.
Who can exercise a casting vote in the case of an equality of votes in Lok Sabha?Â
Which sports have been provisionally removed from the program of 28 "core" Olympic events by the IOC for the LA 2028 olympics?
Which of the following indexes are used to calculate Human Development Index?Â
1. Life Expectancy Index
2. Education Index
3. NNI Index
Who has been recently appointed as the fifth full-time member of the NITI Aayog?
Where was the world’s first air taxi service unveiled?
- What is the full form of ICCW?Â
Who sets a Guinness World Record for almost 59 side lunges in just 60 seconds?
