What rate of interest is obtained from investing in 81/2%

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What rate of interest is obtained from investing in 8¹/₂% per cent stock when the quoted price is 6.5 percent below par ?

1. 8¹/₁₁%
2. 9¹/₁₁%
3. 11¹/₉%
4. 10¹/₉%

Correct Option: B

Required answer [(17/2) / (100 - 6.5)] x 100
= (17 / 187) x 100
= 9¹/₁₁%