A bond with four to five years to run is discounted by:

Question

Accepted Answer

A. 20 per cent

1. The discount begins five years before maturity.
2. The first step is the smallest.
3. That step is 20 per cent.
_Source: RBI Master Circular, Prudential Norms on Capital Adequacy, Primary (Urban) Co-operative Banks_

Answer

60 per cent

Answer

80 per cent

Answer

40 per cent

A bond with four to five years to run is discounted by:

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