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Question No

The document contains sample questions and answers from a test on bonds and loans. The first question asks which answer is false regarding the yield to maturity (YTM) of a bond. The second question asks which payment option is most favorable for a loan of Rs 10,000 with 10% monthly interest.

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Ahmed Husain
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106 views2 pages

Question No

The document contains sample questions and answers from a test on bonds and loans. The first question asks which answer is false regarding the yield to maturity (YTM) of a bond. The second question asks which payment option is most favorable for a loan of Rs 10,000 with 10% monthly interest.

Uploaded by

Ahmed Husain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question No.

9 of 75

Answer A. B. C. D. 10.74% 6.20% 23.60% 13.63%

Which of the following is false with regard to the YTM of a bond? Answer A. B. C. D. It is the Internal Rate of Return of the bond

(2 Marks)

It considers coupon payments and capital appreciation only It assumes that the bond is held till maturity All of the above

Mahesh has taken a loan of Rs 10,000. The interest rate is 10% compounded monthly. Which payment option is more favourable to him? Answer A. 0% upfront and Rs 897 per month in arrears

B. C. D.

2% upfront and Rs 2,605 per quarter upfront 4% upfront and Rs 2.525 per quarter upfront 2% upfront and Rs 5,217 half yearly in arrears

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