An investor purchases an 8% bond having a face value of ₹1,000 and maturity of 5 years for ₹900. A year later he sells it for ₹960 in the market. The holding period gain of the investor is :

CS Executive · Financial and Strategic Management · PYQS · December 2019
An investor purchases an 8% bond having a face value of ₹1,000 and maturity of 5 years for ₹900. A year later he sells it for ₹960 in the market. The holding period gain of the investor is :
(A) 8.88%
(B) 14.00%
(C) 14.58%
(D) 15.55%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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