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BES Company bonds, with current yield 14 per cent, will mature after 10 years with par value of Rs. 1000. The coupon rate of these

BES Company bonds, with current yield 14 per cent, will mature after 10 years with par value of Rs. 1000. The coupon rate of these bonds is 10 per cent. Calculate the market price and the yield to maturity of the bond. How do the following impact the duration of a bond- Maturity, Coupon, Yield to Maturity and Frequency of Coupon Payments. (10 MARKS)

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