Practicing Success
Which of the following statements are correct ? A. If discount rate > coupon rate, then present value of bond > face value B. An annuity in which the periodic payment begins on a fixed date and continues forever is called perpetuity C. The issuer of bond pays interest at fixed interval at fixed rate of interest to investor is called coupon payment D. A sinking fund is a fixed payment made by a borrower to a lender at a specific date every month clear off the loan E. The issues of bond repays the principle i.e. face value of the bond to the investor at a later date termed as maturity date Choose the correct answer from the options given below : |
A, C, E only A, B, D only B, C, E only A, B, C only |
A, C, E only |