Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A company has issued a bond having a face value of ₹10,000 paying annual dividends at 8.5%. The bond will be redeemed at par at the end of 10 years, then the purchase price of this bond if the investor wishes a yield of 8% is : [Given $(1.08)^{-10}= 0.46319349]$

Options:

₹10,555.50

₹10,535.50

₹10,333.33

₹10,335.50

Correct Answer:

₹10,335.50