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ICI issued 10 years maturity bonds with a par value of Rs. 2,000. The bonds have a coupon rate of 7% per annum. If the

ICI issued 10 years maturity bonds with a par value of Rs. 2,000. The bonds have a coupon rate of 7% per annum. If the bonds are selling in the market for Rs. 1700 would you like to purchase this bond? Remember your required rate of return is 8% per annum.

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