Question

The percent income of a year on 6% debentures of face value of ₹100 available in the market for ₹200 is:

• A. 3%
• B. 4%
• C. 5%
• D. 6%

Answer 1

The Correct Option is A

To find the percent income of a year on 6% debentures of face value ₹100 when available in the market for ₹200, follow these steps:

1. Determine the annual interest income from the debentures.

Since it’s a 6% debenture with a face value of ₹100, the interest income is:

\( \text{Interest Income} = \frac{6}{100} \times 100 = ₹6 \)

2. Calculate the percent income based on the current market price of ₹200.

The formula for percent income is:

\( \text{Percent Income} = \left(\frac{\text{Interest Income}}{\text{Market Value}}\right) \times 100\% \)

Substitute the interest income and market value:

\( \text{Percent Income} = \left(\frac{6}{200}\right) \times 100\% = 3\% \)

Therefore, the percent income of a year on the debentures is 3%.