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A bond is issued with a face value of Rs.30, 000. It offers a coupon of 7%, and the bond will mature in 15 years.

A bond is issued with a face value of Rs.30, 000. It offers a coupon of 7%, and the bond will mature in 15 years.

i) Determine the value of the bond at a yield of a) 6% b) 8% c) 10%

ii) Discuss the relationship between yield and the value using the above results.

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