What is the market value of 7.5% stock, in which an income of Rs 143 derived by investing Rs 1700, brokerage being 1/2%?

Question

The market value of a 7.5% stock, in which an income of Rs 143 is derived by investing s 1700, brokerage being 1/2% is

Answer 1

Assume that face value = Rs.100
Dividend per share = Rs.7.5 (as it is 7.5% stock)
By investing Rs.1700, earnings = Rs.143
To get an earning of Rs.7.5, investment required = (1700*7.5)/143 = Rs.89.16
market value of Rs. 100 stock = Rs.(89.16- 1/2) = Rs.88.66