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12:50 moodie1.du.edu.om Based on what you have studied in the course of investment management, you are required to calculate fair price of the following bond

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12:50 moodie1.du.edu.om Based on what you have studied in the course of investment management, you are required to calculate fair price of the following bond and write your opinion whether the bond is undervalued, fairly or overvalued. Salalah bond has 2,000 OMR face value and 0.122 coupon rate; the coupon interest is paid on semiannual basis. The yield to maturity in the Muscat security market on this bond is 8.25 percent and the maturity date is 12 years from now. If the bond is trading at 6570 OMR in Muscat security market. Select one: O a. The fair price is 2594.61 and the bond is overvalued Ob. The bond price is 4431.15 and the bond is under valued Oc. The bond price is 2587.61 and the bond is overvalued Od. The fair price is 2594.61 and the bond is undervalued

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