A bond with face value ₹100 pays a 12% coupon and is repaid, with that coupon, in 1 year. Buyers require 8% a year. To the nearest paisa, what is it worth? (Take $\frac{1}{1.08} = 0.9259$ .)

₹92.59Correct answerYour answer₹100Correct answerYour answer₹103.70Correct answerYour answer₹112Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Worth noting

₹112 is what is received in a year, not what it is worth today.

Ten questions from Perpetuity, Sinking Funds & Bonds, at your own pace.

Ten questions from Perpetuity, Sinking Funds & Bonds, at your own pace.

A bond with face value ₹100 pays a 12% coupon and is repaid, with that coupon, in 1 year. Buyers require 8% a year. To the nearest paisa, what is it worth? (Take 11.08=0.9259\frac{1}{1.08} = 0.92591.081​=0.9259.)