A zero-coupon bond will pay ₹10,000 in 3 years and nothing before. Buyers require 10% a year. To the nearest paisa, what is it worth today? (Take $(1.1)^{3} = 1.331$ .)

₹7,513.15Correct answerYour answer₹8,264.46Correct answerYour answer₹9,090.91Correct answerYour answer₹13,310Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Worth noting

₹9,090.91 and ₹8,264.46 discount only one and two years; ₹13,310 grows the sum instead of discounting it.

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

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

A zero-coupon bond will pay ₹10,000 in 3 years and nothing before. Buyers require 10% a year. To the nearest paisa, what is it worth today? (Take (1.1)3=1.331(1.1)^{3} = 1.331(1.1)3=1.331.)