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Question 2 Assume Eskom debentures will be issued at a par value of R1,000. Interest is paid annually, and the required rate of return is

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Question 2 Assume Eskom debentures will be issued at a par value of R1,000. Interest is paid annually, and the required rate of return is equal to the debenture's coupon interest rate of 12%. The initial maturity is 10 years. Required Prove that the market value of the debenture is equal to its par value

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