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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 / susanta kumar sahoo
(1)(1000/100+08*100)=925.9259
(2) (1000-904.98)/904.98*100=10.499%
| Is This Answer Correct ? | 4 Yes | 3 No |
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