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Suppose you buy a one-year government bond that has a
maturity value of Rs.1000. The market interest rate is 8
per cent. (a) How much will you pay for the bond? (b) If
you purchase the bond for Rs.904.98, what interest rate
will you earn from this investment?
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Answer Posted / prashant l. sutar
(a) 925.92
100%+8%=1000 So 108% contains 1000 then How much for 100%?
=100/108*1000=925.92
(b) 90.498
| Is This Answer Correct ? | 14 Yes | 2 No |
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