A company has issued a bond having face value of ₹ 100,000, carrying an annual dividends at 8% and maturing in 12 years. If the prevailing market rate of interest is 9%, then annual dividend is
A company has issued a bond having face value of ₹ 100,000, carrying an annual dividends at 8% and maturing in 12 years. If the prevailing market rate of interest is 9%, then annual dividend is
Solution
✅ Correct Option: 3
The annual dividend on a bond is the coupon rate applied to the face value; the prevailing market rate affects only the bond's price, not the dividend paid.
Dividend of .
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