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For a one year fixed coupon bond, if the coupon rate is 10%, the face value is Rs 100 and the interest rate in the
- For a one year fixed coupon bond, if the coupon rate is 10%, the face value is Rs 100 and the interest rate in the market is 5%. (6 Marks)
- What is the price of the bond?
- What is the new price of the bond if the interest rates in the market increases to 10%?
- What is the new price of the bond if the interest rates in the market decreases to 3%?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
