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QUESTION 2: If a coupon bond sells at a deep discount, explain the relation between its coupon rate, price, par value and yield to maturity.
QUESTION 2: If a coupon bond sells at a deep discount, explain the relation between its coupon rate, price, par value and yield to maturity. b). What should be the price of a perpetual bond having a 11.9% annual coupon and GH 1,000 face value with a discount rate of 11.9%? c) If a preference share has a 10.5% dividend rate, face value of GH 1,000 and a market discount rate of 10.1%, what should be its value?
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