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( b ) A coupon bond maturing in one year has a face value of Rs 1 0 0 0 and a coupon rate of

(b) A coupon bond maturing in one year has a face value of Rs 1000 and a coupon rate of 8%. If the market interest rate is 6% at the time of purchase, calculate (a) price (b) current yield c) yield to maturity of this bond. What effect would a rise in the market rate of interest to 10% have on its price and yield?
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