King has purchased a bond for ₹1,000 with a coupon payment of ₹250 and sold for ₹1,200. (ii) If King sells the bond for ₹800 after receiving the ₹250 as coupon payment, then what is the holding return of King ?
CS Professional · Financial, Treasury and Forex Management · PYQS · June 2017
King has purchased a bond for ₹1,000 with a coupon payment of ₹250 and sold for ₹1,200. (ii) If King sells the bond for ₹800 after receiving the ₹250 as coupon payment, then what is the holding return of King ?
Answer & Explanation:
Holding return of King when bond is sold for ₹800 = {(800 - 1000) + 250} / 1000 * 100 = 5%
Topics: Financial Management
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