Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

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 :

Options:

A, C, E only

A, B, D only

B, C, E only

A, B, C only

Correct Answer:

A, C, E only