A person purchases a 16% stock at a price of 128. What is the yield (interest) he receives on his investment?

Stocks and Shares Mcqs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Stocks and Shares Mcqs calculations for Mathematics Preparation with detailed explanation.

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Published
7 Oct 2019
Last updated
28 May 2026

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Explanation

The stock pays 16% on its face value, but since it is bought at 128, the effective yield is calculated as (16 × 100) ÷ 128 = 12.5%. Therefore, the investor's return is 12.5%.

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