A company has issued a bond having face value of ₹ 70,000, carrying an annual dividend rate of 8% and maturing in 15 years. If the bond is redeemed at par, then which of the following statements are true?
A. The annual dividend is ₹ 5,600.
B. The annual dividend is ₹ 6,300.
C. Redemption price is ₹ 73,000.
D. Redemption price is ₹ 70,000.
Choose the correct answer from the options given below:
A company has issued a bond having face value of ₹ 70,000, carrying an annual dividend rate of 8% and maturing in 15 years. If the bond is redeemed at par, then which of the following statements are true?
A. The annual dividend is ₹ 5,600.
B. The annual dividend is ₹ 6,300.
C. Redemption price is ₹ 73,000.
D. Redemption price is ₹ 70,000.
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
Annual dividend of Rs. 70,000 Rs. 5,600, so A is true and B is false.
Redemption at par means the bond is redeemed at its face value, that is Rs. 70,000, so D is true and C is false.
Related questions:
2025: 14 May Shift 1
2025: 15 May Shift 1