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Questions › UoH › UoH 2015 › Q62
1 mark, −0.33Macroeconomics › Time value of money and bond pricing › Bond prices, yields and no-arbitrageModerateabout 1 min

UoH 2015 Question 62: Time value of money and bond pricing

Assume that you purchased a Rs.1,000 perpetual bond that pays a market interest rate of 7 percent. If you attempted to sell this bond today subsequent to an increased market rate of interest of 8.5 percent, then you

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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.

  • GATE 2023 · Q42Suppose Amar borrows Rs. 1000 from Ujala. After one year, Ujala wants Rs. 1100 back from Amar. The yield to…
Practise Time value of money and bond pricingMore on Bond prices, yields and no-arbitrage

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Question from the UoH 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.