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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 / rakesh verma
(a) Rs. 925.9259
(b) 10.5%
| Is This Answer Correct ? | 50 Yes | 7 No |
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