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Q2 a) A Rs.100 perpetual bond is currently selling for Rs.95. If the coupon rate of the bond is 13.5% and the current market yield

Q2 a) A Rs.100 perpetual bond is currently selling for Rs.95. If the coupon rate of the bond is 13.5% and the current market yield is 15%, what is the expected fair value of the bond? (2 marks)

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