Question
Tea Mosquito Bug is the major pest
ofÂSolution
TMB is a major pest of cashew causing severe damage in several parts of the world.
An insurance company invests in a ₹1,000 face value bond carrying a 7% annual coupon, maturing in 10 years. Market interest rates fall to 5% soon afte...
BankCo holds debt securities:
• Portfolio A: Government bonds held to collect contractual interest/principal.
• Portfolio B: Corporate...
A company issues ₹10 crore worth of bonds at a coupon rate of 8% annually, while the market interest rate is 10%. The bonds are sold at a discount. Wh...
A financial instrument was issued at a discount. Principal ₹10,00,000, issue proceeds ₹9,40,000, life 5 years. Using effective interest method, if e...
A company issues a 10-year callable bond with a 9% coupon. After 5 years, market interest rates fall to 6%. What is the most likely action the issuer wi...
A bond with face value ₹1,000 pays annual coupon 9%. Market yield for similar risk is 12%. Approximate bond price (one-year discounting for perpetuity...
The duration of a bond is a measure of its:
Interest payable on the bonds is a/an _________
A bond with a face value of ₹1,000, 5% annual coupon, and maturity of 5 years is sold at ₹950. What does this price suggest?
A 5-year bond with face value ₹1000, coupon rate 8% p.a. (paid semi-annually), is trading at ₹950. What is the current yield?
