Match List - I with List - II.
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List I (Bond rates and risk) |
List II (Description) |
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A. |
Coupon rate |
I. |
The interest rate required in the market on a bond |
|
B. |
Yield to maturity |
II. |
It is obtained by dividing annual coupon (stated interest payment) by the bond price |
|
C. |
Interest rate risk |
III. |
It germinates and originates from fluctuating interest rates |
|
D. |
Current (bond) yield |
IV. |
The annual coupon (stated interest payment) divided by the face value of a bond |
Choose the correct answer from the options given below :
1
A - IV, B - I, C - III, D - II
2
A - II, B - III, C - I, D - IV
3
A - III, B - II, C - IV, D - I
4
A - I, B - III, C - II, D - IV