Match List-I with List-II. List-I

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Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

Match List-I with List-II.

List-I		List-II
(A)	Price at which bond is sold to investors	(I)	Redemption
(B)	Amount which bond issuer pays to buyer at maturity	(II)	P.V. > face value
(C)	If discount rate < coupon rate then :	(III)	Face value
(D)	If discount rate > coupon rate, then :	(IV)	P.V. < face value

Choose the correct answer from the options given below :

Options:

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(A)-(I), (B)-(III), (C)-(IV), (D)-(II)

(A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

Correct Answer:

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

Explanation:

The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(II), (D)-(IV)

List-I		List-II
(A)	Price at which bond is sold to investors	(III)	Face value
(B)	Amount which bond issuer pays to buyer at maturity	(I)	Redemption
(C)	If discount rate < coupon rate then :	(II)	P.V. > face value
(D)	If discount rate > coupon rate, then :	(IV)	P.V. < face value