Q.Find the yield on 12% stock bought at 95, if brokerage is ₹1 per ₹100 of nominal stock.

Brokerage is added to the market price on a purchase, so the real cost of ₹100 nominal is the quoted 95 plus ₹1, and the yield is computed on that brokerage-inclusive cost.

Given: 12% stock at 95, brokerage ₹1 per ₹100 nominal.

Effective cost of ₹100 nominal (brokerage added on buying, §6):

Income on ₹100 nominal = 12% of ₹100 = ₹12.

Yield on the brokerage-inclusive cost: …

Cross-check on a larger amount. For ₹9,600 invested, nominal stock bought $= \dfrac{9600}{96}\times100 = ₹10{,}000$ nominal. Income $= 12\%\times10000 = ₹1{,}200$. Yield $= \dfrac{1200}{9600}\times100 …

Two common errors: (i) forgetting brokerage entirely and dividing by 95 (giving ≈12.63%), and (ii) subtracting the brokerage instead of adding it. On a purchase, brokerag …