CA Foundation doubt
Can anyone help me with this ques ???

Asked by Surbhi22 Apr 2026730 views
CA Foundation doubt

Asked by Surbhi22 Apr 2026730 views
Surbhi · 27 Apr 2026
Thanku
Archita · 23 Apr 2026
This is a **bond valuation** question. * Face value = ₹10,000 * Coupon rate = 6% → Annual coupon = ₹600 * Required return (discount rate) = 8% * Time = 4 years We calculate: **Bond Price = PV of coupons + PV of face value** PV of coupons: [ 600 \times \frac{1 - (1.08)^{-4}}{0.08} \approx 600 \times 3.312 = 1987 ] PV of face value: [ \frac{10000}{(1.08)^4} \approx 10000 \times 0.735 = 7350 ] Total price: [ 1987 + 7350 = 9337 ] ✅ **Correct answer: (a) ₹9337**
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