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Company XYZ is considering issuing a debenture whose face value is Sh. 250 witha fixed interest rate of 8 %. The cost of the Debenture

  1. Company XYZ is considering issuing a debenture whose face value is Sh. 250 witha fixed interest rate of 8 %. The cost of the Debenture in this company is 11%. How much should investors pay now?
  2. If you were the investor, will you go for A zero coupon debenture or a regular debenture?

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