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Hydraulics limited has an outstanding bond of coupon rate 14%. The bond was issues 5 years ago with a tenure of 8 years. Interest payments
Hydraulics limited has an outstanding bond of coupon rate 14%. The bond was issues 5 years ago with a tenure of 8 years. Interest payments are semi annual. Face value is Rs. 100. It is currently trading at Rs. 108. If similar risky bonds yield a return of 12%, would you suggest buying this bond?
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