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A bond has 5 year maturity, Rs. 5000 face value and pays coupon of 12% semi annually. Bond will be redeemed at 5% at the
A bond has 5 year maturity, Rs. 5000 face value and pays coupon of 12% semi annually. Bond will be redeemed at 5% at the end of 5 years. Similar bond in market is presently yielding 8%. What is the intrinsic value or present value of the bond?
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