ADVANCED BANK MANAGEMENT (ABM) 

SET 10

1. ......................... is not a method for detecting wrong mention of inventory in a stock statement.
Answer : Analysis of financial statements 

2. ...................... is not a danger sign about the direction of business of the borrower .
Answer : Returns of cheques or bills 

3. A bond with Par Value of Rs. 100 is purchased for Rs. 95.92 and it paid a Coupon rate of 5%. Calculate its current yield .
Answer : 5.21
Explanation :
Coupon = Face Value X Coupon Rate  
And annual interest paid =
Market Price X Current Yield
5 = 95.92 X CY
CY = 0.0521 = 5.21%     

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