Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

The purchase price P of a ₹50,000, 6% bond, dividends payable semi-annually, redeemable at par in 10 years, if the yield is to be 5% compounded semi-annually. Then P is equal :

[Given $(1.025)^{-20}=0.61027094]$

Options:

₹35897.29

₹53897.29

₹53789.29

₹58973.29

Correct Answer:

₹53897.29