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Home Interview Accounting and Finance Comments

  • Question
  • The yield to maturity on a discount bond is


  • Options
  • A. equal to both the coupon rate / current yeild
  • B. less than the current yeild but greater than the coupon rate
  • C. greater than both the coupon rate / current yeild
  • D. equal to the current yeild but greater than the coupon rate

  • Correct Answer
  • equal to both the coupon rate / current yeild 

    Explanation

    Yield to maturity is a concept for fixed rate bonds and is the internal rate of return i.e. the rate at which future flows are discounted on a compound basis to give the present value of the bond including accrued interest.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


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    • 1. Saving accounts usually offer ___ interest rates than checking accounts.

    • Options
    • A. Higher
    • B. Lower
    • C. Equal
    • D. None
    • Discuss
    • 2. Which of the following is the oldest Joint Stock Bank of India ?

    • Options
    • A. Patiala Bank
    • B. Punjab National Bank
    • C. Bank of India
    • D. Allahabad Bank
    • Discuss
    • 3. Explain What is the difference between debenture holders and creditors ?
    • Discuss
    • 4. All of these are exemptions from local real property taxes EXCEPT :

    • Options
    • A. Low-income homeowner's exemption
    • B. Homeowner's exemption
    • C. Veteran's exemption
    • D. Senior citizen's tax exemption
    • Discuss
    • 5. Job cost sheets constitute the subsidiary ledger for the
    • Discuss
    • 6. In preparing a bank reconciliation, outstanding checks are

    • Options
    • A. Deducted from the balance sheet
    • B. Added to the bank balance
    • C. Deducted from the bank balance
    • D. Added to the balance sheet
    • Discuss
    • 7. What is an example of an inflation risk?
    • Discuss
    • 8. The income and substitution effects account for

    • Options
    • A. the upward sloping curve
    • B. the downward sloping curve
    • C. Both A & B
    • D. None of the above
    • Discuss
    • 9. Transfer payments are included in

    • Options
    • A. Government subsidies
    • B. GDP
    • C. Both A & B
    • D. None of the above
    • Discuss
    • 10. In which of the following cases will total revenue increase?

    • Options
    • A. Price rises and demand is inelastic
    • B. Price falls and supply is inelastic
    • C. Price rises and demand is elastic
    • D. Price falls and demand is inelastic
    • Discuss


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