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Questions › UoH › UoH 2010 › Q49
1 mark, −0.33Macroeconomics › Time value of money and bond pricing › Bond prices, yields and no-arbitrageModerateabout 1 min

UoH 2010 Question 49: Time value of money and bond pricing

The annual rate of interest on a 3-month Rs. 10,000 bond that sells for Rs. 9,600 is:

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Time value of money and bond pricing has come up 20 times in 5 exams since 2010.

What this question tests

This question is on Bond prices, yields and no-arbitrage, part of Time value of money and bond pricing in Macroeconomics.

How bond prices move with interest rates and what ties asset returns together.

TestStop has 8 past-paper questions on this subtopic; the nearest in year are below.

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Question from the UoH 2010 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.