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A bond with less than one year to run is discounted by:
A300 per cent
B200 per cent
C400 per cent
D100 per cent
Answer & Solution
Correct answer: D. 100 per cent
1. The schedule reaches its steepest at the end.
2. By then the instrument is nearly repaid.
3. It is discounted fully, at 100 per cent.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_
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