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A companys bonds have 10 years remaining to maturity. Interest is paid semi-annually; the bonds have a Rs.1,000 par value and the coupon interest rate
A companys bonds have 10 years remaining to maturity. Interest is paid semi-annually; the bonds have a Rs.1,000 par value and the coupon interest rate is 9.5%. The current market price of the bond is Rs. 800. a. What is the bonds current yield? (1 mark) b. What is the bonds yield to maturity? (1 mark) c. What is the bonds capital gain or loss yield? (1 mark)
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