Consider the following statements regarding bonds and examine which is/are correct statement/s.
Statement I : Current yield of bond is equal to annual interest divided by prevalent value of bond.
Statement II : Zero-coupon bonds are issued at premium and redeemed at par.
Statement III : The present value of the bond is the total of the discounted value of annual interest payments and the discounted value of maturity value.
Select the correct code :
A. | Only Statement I is correct. |
B. | Statements I and II are correct. |
C. | Statements I and III are correct. |
D. | Statement II and III are correct. |
Answer : C Explanation : |
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |