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Posted on Jul 08, 2024

X Company was issued with a nominal value of 1 0 0 0 TL and a credit record with a maturity of 1 0 years.

X Company was issued with a nominal value of

1000

TL and a credit record with a maturity of

10

years. Coupon rate is

10 % .

What will be its value if the market interest rate rises to

14 %

after

1

year? What is the relationship between market interest rate and loan value?

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