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Question

Complete the following table by writting suitable numbers and words.
Sr.No FV Share is at MV
(1) Rs 100 par ...
(2) ... premium Rs 500 Rs 575
(3) Rs 10 ... Rs 5

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Solution


(1) When share is at par, MV (Market value) = FV (Face value)

∴ MV = FV = Rs 100

(2) FV = MV − Premium = Rs 575 − Rs 500 = Rs 75

(3) FV = Rs 10 and MV = Rs 5

Since MV < FV, so the share is at discount.

Discount = FV − MV = Rs 10 − Rs 5 = Rs 5

The complete table is given below:
Sr.No FV Share is at MV
(1) Rs 100 par Rs 100
(2) Rs 75 premium Rs 500 Rs 575
(3) Rs 10 discount Rs 5 Rs 5

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