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1 ) An investor is considering the purchase of a 5 - year 1 6 % coupon bond. Coupon is payable at the end of
An investor is considering the purchase of a year coupon bond. Coupon is payable at the end of each year. The redemption value of the bond is at par of Rs If the investor wants a yield of what is the price at which he should be willing to buy the bond? marks A company has a Rs par value bond currently selling at Rs The coupon rate is and maturity period is years. If the bond makes semiannual payments, what is its yield to maturity? marks Bajaj Ltd issues a bond having face value of Rs and a coupon rate of Interest is paid semiannually and the bond is redeemable at face value after years. What is the intrinsic value of the bond if the required rate of return is marks A year bond is issued with a face value of INR paying interest of INR a year. If interest rates increase shortly after the bond is issued, what happens to the bonds marksa Coupon rate?b Price?c Yield to maturity?
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