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AgriTech Innovations Ltd., a leading agricultural technology company in Bangladesh, has issued an 8- year bond with a face value of BDT 1,200. The bond
AgriTech Innovations Ltd., a leading agricultural technology company in Bangladesh, has issued an 8- year bond with a face value of BDT 1,200. The bond features a coupon rate of 3.8%, paid semi-annually. In the current market, the yield from comparable investments is 4.2%. a. What should be the fair value of AgriTech's bond, considering its current risk and return scenario? b. What would be the bond's value if the market yield decreases to 3.6% from the current rate. Provide a rationale for this change
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