n NISM Certifications
X NISM Series X
Medium

Calculate the coupon yield of a bond with a Rs 14 coupon, Rs 100 face value, and Rs 109 market price.

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

Options

  1. A

    12.84%

  2. 14%

    Correct answer

  3. C

    8.97%

  4. D

    11.52%

Why this is the answer

Coupon yield = (Coupon / Face value) = 14 / 100 = 14%.

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