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FDM ltd issues a three-year bond with a 12% coupon rate and interest repayable annually. The bond is priced at its face value of 100

  1. FDM ltd issues a three-year bond with a 12% coupon rate and interest repayable annually. The bond is priced at its face value of 100 and the market rate of interest is 8%. What is its current value?

    1. 97
    2. 110
    3. 70
    4. 800

T

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