Question:
A bond of face value ₹1000 matures in 10 years and interest is paid annually at 4% per annum. If the present value of the bond is ₹838, find the yield to maturity (1.04)-10 ≈ 0.676.
A bond of face value ₹1000 matures in 10 years and interest is paid annually at 4% per annum. If the present value of the bond is ₹838, find the yield to maturity (1.04)-10 ≈ 0.676.
Updated On: Jun 14, 2024
- 1.6% p.a.
- 2.0% p.a.
- 2.6% p.a.
- 3.2% p.a.
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The Correct Option is B
Solution and Explanation
The correct option is (B) :2.0% p.a..
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