A Bond has a coupon rate of 10% per annum paid semi annually and the coupon payment made is ₹50, so the face value of the bond is : |
₹1,000 ₹500 ₹2,000 ₹800 |
₹1,000 |
$\text{Coupon rate}=10\%\text{ p.a. paid semi-annually}.$ $\text{Rate per half-year}=5\%.$ $\text{Coupon payment per half-year}=50.$ $50=0.05\times \text{Face Value}.$ $\text{Face Value}=\frac{50}{0.05}=1000.$ $\text{Face value of the bond}=₹1000.$ |