Income from stock holding at par: What annual income will be derived from ₹3275 of 11% stock (assume at par)?

Introduction / Context:When stock is held at par, the annual income is simply the coupon rate times the nominal holding. No price adjustment is needed.

Given Data / Assumptions:

• Nominal holding = ₹3275.
• Coupon rate = 11% per annum.
• Assume the stock is at par (no premium/discount needed for income calculation).

Concept / Approach:Income = rate * nominal = 0.11 * 3275.

Step-by-Step Solution:Annual income = 0.11 * 3275 = ₹360.25.

Verification / Alternative check:Breakdown: 10% of 3275 = 327.50; 1% = 32.75; total = 327.50 + 32.75 = ₹360.25, confirming the computation.

Why Other Options Are Wrong:

• ₹360.50 and ₹350.25 are close numerically but not equal to 11% of 3275.
• “None of these” is unnecessary as the exact figure is listed.

Common Pitfalls:

• Mistyping decimal places or treating 11% as 0.011 instead of 0.11.

Final Answer:Rs. 360.25