Which of the following statements are correct? A. If discount rate coupon rate, then present value of a bond face value B. An annuity in which the periodic payment begins on a fixed date and contimues forever is called perpetuity C. The issuer of bond pays interest at fixed interval at fixed rate of interest to investor is called coupon payment D. A sinking fund is a fixed payment made by a borrower to a lender at a specific date every month to clear off the loan E. The issues of bond repays the principle i.e. face value of the bond to the investor at a later date termed as maturity date Choose the correct answer from the options given below:

Question

Which of the following statements are correct? A. If discount rate > coupon rate, then present value of a bond > face value B. An annuity in which the periodic payment begins on a fixed date and contimues forever is called perpetuity C. The issuer of bond pays interest at fixed interval at fixed rate of interest to investor is called coupon payment D. A sinking fund is a fixed payment made by a borrower to a lender at a specific date every month to clear off the loan E. The issues of bond repays the principle i.e. face value of the bond to the investor at a later date termed as maturity date Choose the correct answer from the options given below:

Examsnet · Accepted Answer

Correct Answer is : B, C, E only

CUET UG Math 30 Aug 2022 Shift 2