n NISM Certifications
XXI NISM Series XXI-A
Medium

As per the Immunisation strategy, the amount has to be invested in two bonds X and Y in the ratio of 40: 60. The market price of Bond X is Rs. 800 and Bond Y is Rs. 750. If Rs. 1 crore has to be invested in these bonds, calculate how many of each bond needs to be bought?

Practice question from NISM XXI A for PMS - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    8000 , 5000

  2. 5000 , 8000

    Correct answer

  3. C

    4500 , 7500

  4. D

    7500 , 4500

Why this is the answer

Total investment = Rs. 1 crore. In ratio 40:60, Rs. 40 lakh allocated to Bond X and Rs. 60 lakh to Bond Y. Number of Bond X = 40,00,000 / 800 = 5000 Number of Bond Y = 60,00,000 / 750 = 8000

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