Corporate Finance, Quiz 1

September 2025 term, 26 Oct 2025, Set QDB2

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Question 1

+4−0Single correctInstructions

A zero-coupon bond with face value of Rs 5,000 matures in one year. Its price is Rs 4,500. What is the yield of the bond?

Select one option

• A.

  8.42%

• B.

  10.00%

• C.

  11.11%

• D.

  9.00%

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A zero-coupon bond with face value of Rs 5,000 matures in one year. Its price is Rs 4,500. What is the yield of the bond? If you want to double your money at 5% annual rate of interest, how many years will it take? You purchased an asset today for Rs 1,000. Suppose the asset earns an annual interest rate of 7% which is continuously compounded. What will be the value of the asset after 5 years (Rounded off to nearest integer)?