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    Question

    What is the annual coupon rate of a bond having face

    value of Rs.1000, that pays quarterly payments of Rs.20.
    A 6% Correct Answer Incorrect Answer
    B 7% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer
    E 12% Correct Answer Incorrect Answer

    Solution

    Annual coupon rate = 20*4/1000 = 8%

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