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The government is proposing to sell a 10 year Kengen bonds of Kshs. 100,000 at 12.5% rate of interest per annum. The bond will be

The government is proposing to sell a 10 year Kengen bonds of Kshs. 100,000 at 12.5% rate of interest per annum. The bond will be amortized equally over its life. Assuming a hurdle rate of 18%, calculate the bonds present value for an investor willing to buy the bond.

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