Question

Q2. Explain credit rating. Do you think that high credit rating is a

recommendation to buy the bond?

Mr. Mahesh is considering purchase of a bond which is currently quoted at Rs.

910. The bond has a face value of Rs. 1000. It carries coupon rate of 11% and

has 5 years to maturity. Currently, the interest income is subject to 30% rate of

tax and capital gain is subject to 10% tax rate. Advice, Should Mr. Mahesh buy

this bond if his required rate of return is 10%. Also calculate YTM at current

market price.

Year Kharif Pulses Rabi Pulses Total

2020-21 10.60 MT 15.00 MT 25.60 MT

2019-20 10.10 MT 16.20 MT 26.30 MT

2018-19 9.85 MT 16.10 MT 25.95 MT​

Answer 1

Answer:

long question answer I don't know