Question 37
EasyOriginal questionA bond with a face value of ₹100 is selling for ₹104. How is it selling?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A price above the face value is a premium; below it, a discount; equal to it, par.
₹104 is above ₹100, so the bond sells at a premium.
- Concept
- Premium, par and discount
- Typical timeTypical
- 60 s
- Your timeYours
- —
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