The annual yield percent on 12% debentures of face value ₹100 each and available at ₹75 each is :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 16%
Face value = Rs. 100
Market price = Rs. 75
Interest = 12% of face value = Rs. 12
$\text{Yield Percentage} = \frac{\text{Interest}}{\text{Market Price}}×100$
$=\frac{12}{75}×100=0.16=16\%$