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Tesla Inc. offers 9% coupon bonds which have 15 years remaining to maturity. The current market value (Po) of one of these Rs.1,000-par-value bonds is

Tesla Inc. offers 9% coupon bonds which have 15 years remaining to maturity. The current market value (Po) of one of these Rs.1,000-par-value bonds is Rs. 700. Interest is paid semiannually. Required rate of return is 14 percent on these bonds. Find the intrinsic value of this bond.

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