The percent income of a year on 6% debentures of face value of ₹100 available in the market for ₹200 is :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 3%
The annual income is,
Annual income = Coupon rate × Face value
$=\frac{6}{100}×100=6$
Now,
Yield = $\left(\frac{Annual\, income}{Market\,Price}\right)×100$
$=\frac{6}{200}×100=3\%$