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PAPER 3 JAIIB
91.A bonds redemption value is Rs. 1000 bears
a annual coupon rate of 12% and has a term to
maturity of 3 years. The going market rate for
similar, new investments is 10% what is the
price of this bond in secondary markets?
a) Rs. 1049.44 b)Rs.1059.55 c)Rs.1409.44
d)Rs.999.55
92. What is true about the duration of a bond?
a)Duration is expressed in terms of years.
b)duration of a coupon-paying bond is always
less than its maturity.
c)In zero coupon bonds where periodical
interests are not paid out, duration will be equal
to its maturity.
d)All of the above
93.The duration of a perpetual bond is equal
to 1 + r/r ,where R=current yield of the bond?
a)true
b)false
d) recording sale