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Thysis was subjective question, hence you have to write your answer in the Text-Fiold given below Answer the following questions A. A 1000 par value
Thysis was subjective question, hence you have to write your answer in the Text-Fiold given below Answer the following questions A. A 1000 par value bond, bearing a coupon rate of 14 per cent, will mature after 10 yoars. The required rate of return on this What is the value of this bond? [2 Marks] B. A 100 par value bond bears a coupon rate of 14 per cent and matures after 5 ears. Interest is payable semi-annually. Compute the value of the bond if the required rate of return is 16 percent. [3 Marks]
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