n NISM Certifications
X NISM Series X
Medium

A bond’s coupon payment is calculated as a percentage of its ______.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Market value

  2. Face value

    Correct answer

  3. C

    Intrinsic value

  4. D

    Redemption value

Why this is the answer

Bond coupon payments are always calculated on the face value of the bond, irrespective of its market price or intrinsic value.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.