Question 34
EasyOriginal questionA bond with a face value of ₹1,000 is selling for ₹950. How is it selling?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A bond sells at par at its face value, at a premium above it and at a discount below it.
₹950 is below ₹1,000, so it sells at a discount of ₹50.
Worth noting
A premium would mean a price above ₹1,000.
- Concept
- Premium, par and discount
- Typical timeTypical
- 60 s
- Your timeYours
- —
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