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%.
Iodine is used in milk for detecting adulteration for
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The chemical formula for Gypsum:
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Which of the following is not a correct statement?
How much subsidy will be provided to women beneficiaries for 20 HP tractor under Sub Mission on Agricultural Mechanization (SMAM) scheme?
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Based on mode of action, activated clay exerts what type of effect?